Repurchase of Vattenfall: Landesbetrieb may take over Berlin power grid

The state of Berlin can take its power grid back into its own hands: The state-owned company Berlin Energie was awarded the contract to operate the grid, said the Berlin Senate for Finance. The contracting authority has therefore selected the offer as the best.

Berlin had given its shares in the electricity supply company Bewag 1997, Vattenfall took over in 2001 the majority. The concession formally expired in 2014. The current approval for Berlin Energy should apply to the Berlin Senate for 20 years.

Grid operation in Germany is popular with many utilities. The revenue is regulated and therefore safe. In addition, the networks provide access to customers - in Berlin around 2.3 million - to which the operators can offer further business.

For years, the Berlin Senate has been working to reverse privatizations of the past decades. The water companies were bought back, also apartments are acquired. SPD Group Vice Jörg Stroedter said: "The successful re-municipalization in the water sector shows that it makes sense that electricity and gas are once again in public hands." This will lead to stable prices.

Berlin Energie assumes that Vattenfall can demand about 1.5 billion euros for the network. The opposition factions of FDP and CDU, however, count on two billion euros and criticized the planned buyback. "The Senate is pursuing a policy with the motto: nationals, whatever the cost," said the Union. The Chamber of Commerce and Industry warned: "Anyone who goes to the re-municipalization with the expectation of cheaper electricity prices and more renewable energy will be disappointed."

Whether the Vattenfall subsidiary Stromnetz Berlin GmbH goes to court against the decision is not yet certain: "We regret the decision and will thoroughly examine the selection justification before deciding what to do next," she said.

The manager of Berlin Energie, Wolfgang Neldner, however, hopes to take over the network later this year. The company wants to work for more climate protection and improve the supply of industry and neighborhoods. In addition, Neldner announced to want to take over all Vattenfall employees of the network operation.

In addition to Berlin Energie and Vattenfall, the cooperative BürgerEnergie had applied for it. She wants to cooperate with Berlin Energie. The alliance Berliner Energietisch, which initiated a referendum on the re-communalisation of the network in 2012, welcomed the decision of the awarding chamber.