The biggest utility firm in Germany, and one of the UK’s Big Six energy suppliers, E.ON, has announced plans to amend their strategies to accommodate for the energy crisis sweeping across Europe’s utilities sector.
In an interesting announcement from the firm, E.ON revealed its plans to split in two and spin off most of its power generation, energy trading and upstream businesses to a separate, as-yet-uncreated company.
Johannes Teyssen, E.ON’s CEO, has admitted that the Big Six energy firm was unable to meet the new challenges being presented to the energy market, and revealed plans to amend E.ON’s business model accordingly.
In response to what E.ON calls “dramatically altered global energy markets, technical innovation, and more diverse customer expectations;” the company will now place more focus on its renewable activities, bespoke energy efficiency services, and regulated distribution networks.
In his official statement, Johannes Teyssen said: “E.ON’s existing broad business model can no longer properly address these new challenges.”
E.ON has said that the company will prepare to formally break up next year under a new listing, while the actual spin-off won’t be taking place until after its annual general meeting in 2016.
One of the questions most quickly addressed by E.ON following this announcement is that of job cuts; promising that about 40,000 employees would remain with the parent group, while the remaining 20,000 would join the new company.
E.ON’s official plans and more details on the firm’s investment in wind and solar power will be released in a news conference on Monday 8th December.
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