Berlin. Numbering more than 1,000 guests, the conference of the Association of Local Utilities (VKU) is the place where German municipal enterprises gather. Its main topic is traditionally energy supply – after all, municipal utilities play a key role in providing households with electricity and heat. WINGAS also presented itself at the latest conference in Berlin with its own stand. As one of Germany’s largest energy suppliers, the company has long-standing business relationships with many municipal utilities.
The panel on the subject of “The energy industry of the future: Market-driven or state-controlled” saw a discussion between WINGAS Managing Director Ludwig Möhring, who is responsible for Sales, Andreas Feicht, the VKU’s Vice-President and CEO of WSW Energie und Wasser AG, Sven Becker, Chief Executive Officer of Trianel GmbH, Professor Manuel Frondel from the Rhenish-Westphalian Institute for Economic Research, and Hubertus Heil, Deputy Chairman of the SPD parliamentary party in the Bundestag.
The discussion clearly revealed that the energy market is so regulated that it is hardly possible to speak of free competition among generators any more. “Massive state intervention in the market and strong subsidization of renewable energies mean above all that the electricity market is designed in such a way that we cannot dispense with the government’s regulatory framework in the short term,” was how Möhring voiced his fear.
However, Hubertus Heil emphasized that the decision against the capacity market and in favor of the energy only market with free scarcity prices was also intended to stimulate competition between generators. “However, the energy only market will not function in this way,” countered representatives from the industry. Ludwig Möhring also emphasized in this connection: “I feel sure that, given this insecure foundation in the gas industry, no investor will build a new large power plant that needs to be refinanced by revenue on the electricity market.”