EnBW Gas GmbH Must React to the Increased World Market and Import Prices of Natural Gas

Stuttgart. After many gas supply companies in Germany increased their gas prices in the summer or in the last few weeks due to the drastically increased world market and import prices, it has become unavoidable for EnBW Gas GmbH to adjust their prices according to the resulting supply price increases. As a redistributor, EnBW Gas GmbH is itself affected by the higher gas prices. It is just reacting to this change in cost with its price adjustment, which has now become necessary. With its price adjustment, EnBW Gas GmbH is now passing on exactly these higher procurement costs from the last three procurement price rises in 2005. Consequently, the price adjustment will not increase EnBW’s profit. All other components of the end customer price remain constant.

As the price adjustment will only come into effect on 1 November 2005, one month after the start of the heating period, EnBW Gas GmbH’s customers will be affected by the increased procurement costs later than many consumers in other areas of Germany. The intermediate procurement cost increases accrued will be borne by EnBW Gas GmbH The energy rates of EnBW’s zone tariff (basic natural gas supply) will be increased as of 1 November 2005 by 0.50 Cents/kWh (net) or 0.58 Cents/kWh (gross). The basic price remains unchanged (18.60 Euros/Year (net) or 21.58 Euros/Year (gross). Based on the average annual consumption of a family, from November the adjustment will lead to - depending on the procurement cost increase - additional costs of about 5.79 Euros per month (net) or 6.72 Euros per month (gross), equating to an adjustment of approximately 10 percent.

Due to price developments in the international gas market, EnBW, as a redistributor, cannot rule out further procurement price adjustments in the first quarter of next year. Should this become unavoidable, EnBW Gas GmbH will also pass on this price adjustment. The possible amount and exact date will only be able to be determined when all the required information is available and has been analysed towards the end of this quarter.

EnBW Gas GmbH is one of about 100 gas supply companies in Baden-Württemberg and predominantly supplies customers in Greater Stuttgart. In a country-wide comparison, EnBW Gas GmbH’s prices are – even after the current price adjustment – somewhere in the middle.