VERBUND-APG AG and TIWAG-Netz AG Cement New Cooperation

11/12/2009Wien

VERBUND-Austrian Power Grid AG and TIWAG-Netz AG have agreed on a close cooperation in order to implement the procedures of the third EU liberalization package for the stimulation of competition on the EU electricity market in a way that is as efficient as possible and optimal for the market.

On account of the emerging requirements, TIWAG-Netz AG will commission VERBUND-Austrian Power Grid AG with the operational management of their power grid.

The operation of the Tyrol extra-high voltage lines, which are used for nationwide transportation, will be the responsibility of the Verbund Grid subsidiary in future. The ownership of grids and grid infrastructure facilities, and the added value from the operation of the extra-high voltage lines, are to remain in Tyrol as before. 

Exacting cooperation requirements in the European grid
Europe's power grid operators have always been subject to particularly exacting cooperation requirements. The most recently concluded third EU liberalization package clearly intensifies these demands once again. A central component of the third liberalization package concerns the grid operator’s independence from production and trade.

Improvement in the grid situation
The forward-looking cooperation of the control areas of TIWAG-Netz and VERBUND-Austrian Power Grid will lead to a significant improvement in the situation on the balancing energy markets. Furthermore, the cooperation will result in an improvement in the development of the national Austrian electricity market and will push forward the integration in the European power market as a whole.

Austrian control area managers are now responsible for some 97 % of the federal territory
VERBUND-Austrian Power Grid AG is an Austrian control area manager and already responsible for the federal provinces of Vienna, Lower Austria, Burgenland, Styria, Carinthia, Upper Austria and Salzburg. The current flows in Austria are controlled and balanced between the large production plants and the distribution grids on a daily basis, as well as the processing of imports and exports for overseas. Through the cooperation between VERBUND-Austrian Power Grid AG and TIWAG-Netz AG, the area of responsibility expands to include Tyrol, therewith encompassing 96.6 % of the Austrian electricity market.

The inclusion of the Tyrol power plants and the optimization of the controls will result in the cooperation bringing further improvements for Austrian security of supply. This is particularly necessary on account of the continuous increase in electricity from Germany's wind power plants, which place the highest demands on the controlling of current flows in Europe. Furthermore, the processing of the daily program will be made easier for approx. 107 balance groups and enable an improved European market access with inexpensive electricity prices. Operations are scheduled to start in 2011. Preparations will begin immediately.

Benefits for Austrian electricity customers
The cooperation between TIWAG-Netz and VERBUND-Austrian Power Grid provides significant administrative relief for the Austrian electricity supplier and electricity customers. On account of the growth in the standardized Austrian electricity market, power traders have lower administration costs, which allows them to reduce balance energy costs. VERBUND-Austrian Power Grid will successively fulfil all further necessary implementation measures of the third EU liberalization package.