The share price in Scottish Power rose yesterday on speculation that RWE would make a bid for it. With 240m customers in Europe, economies of scale are an obvious driver. However, the European playing field looks far from level, and the rules of the game don't seem that fair either.
The share price in Scottish Power rose yesterday on speculation that RWE would make a bid for it. There is no doubt that with 240m customers in Europe the two German utilities see that economies of scale are the way forward. RWE has diversified into water and telecoms but has realised the errors of its ways, and is looking to sell Thames water.
E.On have been progressing with the takeover of Endessa a spanish utility. This has run into problems as the Spaniards look to protect their national industries. Ironically, the EU has stepped in to stop the anti-competitive behaviour of the regulator, but then is also likely to look at anti-competitive behaviour as a result of the monopoly that will be created. The Germans are not regulated, apart from by the EU, and it appears that they are allowed to buy up other utilities outside of their own country with little resistance. When the likes of Powergen and National Power looked to do this ten years ago they were prevented.
Deregulation in the UK started in 1989, and was encouraged across Europe in 1996. So it seems grossly unfair and wrong that in both Germany and France full de-regulation will not be completed until 2007 a full 9 years after the UK and Norway (which is not part of the EU 25).
17 February 2006
Commissioner shows teeth and the big players will be aware that they are in for a rough ride in the next couple of months. Overall this will put bearish pressure on prices. read more...
28 November 2005
Ofgem shows its teeth by commisioning two investigations and also suggests that they are watching the LNG gas facilities at Grain very carefully. read more...
08 September 2005
More company buy-outs leads to lower liquidity. read more...
23 May 2005
Italian NAP forces market moves as rumour is quashed by counter rumour. read more...
28 January 2005
French auditors question decomissioning costs read more...
Oil Disruption Fears create Volatile Markets
The European Union provided details this week of its proposed ban of Iranian oil imports as the Union steps up pressure over the country's nuclear programme. read more...
20 January 2012
The European Union provided details this week of its proposed ban of Iranian oil imports as the Union steps up pressure over the country's nuclear programme. read more...
European Credit Downgrades add to European Woes
Standard & Poors, the credit rating agency has downgraded 9 eurozone countries: France, Italy,Spain,Cyprus, Portugal, Austria, Slovakia, Slovenia and Malta. This comes at the end of a week that has seen strengthening oil prices but surpressed UK gas and power markets. read more...
13 January 2012
Standard & Poors, the credit rating agency has downgraded 9 eurozone countries: France, Italy,Spain,Cyprus, Portugal, Austria, Slovakia, Slovenia and Malta. This comes at the end of a week that has seen strengthening oil prices but surpressed UK gas and power markets. read more...
November 2011 Review
While debt repayment concerns combined with woeful economic indicators continued to be a feature throughout November, supply and demand fundamentals were an obvious driver too. Unseasonably warm weather combined with (and causing) plentiful gas storage meant that UK power and gas markets went into a nose dive. read more...
02 December 2011
While debt repayment concerns combined with woeful economic indicators continued to be a feature throughout November, supply and demand fundamentals were an obvious driver too. Unseasonably warm weather combined with (and causing) plentiful gas storage meant that UK power and gas markets went into a nose dive. read more...
Turmoil returns on Greek Announcement
Following last weeks announcement that the eurozone leaders had reached an agreement on a Greek bailout - one that would see banks take a 50% hit on their holdings of Greek debt, the Greek Prime Minister made his own shocking announcement that he plans to hold a referendum on the matter. The Markets tumble in response. read more...
01 November 2011
Following last weeks announcement that the eurozone leaders had reached an agreement on a Greek bailout - one that would see banks take a 50% hit on their holdings of Greek debt, the Greek Prime Minister made his own shocking announcement that he plans to hold a referendum on the matter. The Markets tumble in response. read more...
Eurozone Debt Deal Announced
After prolonged discussions and late night talks, European leaders have announced a agreement on a a Eurozone debt deal. But will the devil be in the detail? read more...
27 October 2011
After prolonged discussions and late night talks, European leaders have announced a agreement on a a Eurozone debt deal. But will the devil be in the detail? read more...
Two Years On...
This week marked the 2nd Anniversary of the collapse of Lehman Brothers, perhaps the most significant collapse of the banking crisis. Ironic perhaps then that the anniversary coincided with the publication of stricter international banking rules requiring banks to hold larger cash reserves. How will these banking regulations impact energy companies? read more...
17 September 2010
This week marked the 2nd Anniversary of the collapse of Lehman Brothers, perhaps the most significant collapse of the banking crisis. Ironic perhaps then that the anniversary coincided with the publication of stricter international banking rules requiring banks to hold larger cash reserves. How will these banking regulations impact energy companies? read more...
Falling Wholesale Prices but what about the tariffs?
Even though the power wholesale market is following the falls seen in gas (Winter 09 Baseload closed the week down £0.20MWh at £38.70), and is now at levels where supplier tariffs must be under pressure, any tariff reduction announcements are unlikely to be made anytime soon. read more...
18 September 2009
Even though the power wholesale market is following the falls seen in gas (Winter 09 Baseload closed the week down £0.20MWh at £38.70), and is now at levels where supplier tariffs must be under pressure, any tariff reduction announcements are unlikely to be made anytime soon. read more...
Who will have the last laugh on the Green Agenda?
The Government’s announcement last week on the projected state of the UK energy industry is interesting and informative and demonstrates their willingness to impose a green agenda - but at what cost? read more...
24 July 2009
The Government’s announcement last week on the projected state of the UK energy industry is interesting and informative and demonstrates their willingness to impose a green agenda - but at what cost? read more...
Ofgem enquiry completed
Ofgem have completed their competition probe and not really delivered for business. read more...
18 March 2009
Ofgem have completed their competition probe and not really delivered for business. read more...
Imera secures new inter connector
Imera an Irish consortium has secured a good growth opportunity for 2011. read more...
07 December 2008
Imera an Irish consortium has secured a good growth opportunity for 2011. read more...
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