❝ A decade ago, EON SE and RWE AG were two of Germany’s most valuable companies and their businesses were roughly similar: they generated power (much of it from coal and nuclear), ran energy networks and sold electricity to end consumers.
The complex asset swap and share issue they announced over the weekend — including the divvying up of RWE-controlled Innogy SE’s assets — is the last death knell for that all-encompassing model. EON will become a company focused purely on energy networks and retail customers, while RWE will combine the two companies’ renewables businesses.
❝ If EON and RWE can prevail, other utilities may follow. Utility investors would then be able to decide what future they believe in: a world where solar and wind energy is cheap and so what matters are cash-generating networks and end-customers (EON). Or one in which the whole economy is electrified and the electricity generator is king (RWE). At least we’d have a choice.
Either road, we consumers, citizens of Planet Earth, stand a better chance for an affordable, long and healthful life.