Mild winter costs RWE small fortune
Above-average temperatures during last winter reduced gas consumption in the Czech Republic by 15 percent. In combination with falling gas prices, the lower consumption cut the group’s revenues by one-fifth to CZK 43.5bn. Yet the company is facing an even more pressing issue associated with its underground gas reservoirs, which are capable of storing some 3 billion cubic metres of gas. The diminishing difference between winter and summer wholesale prices has pushed gas storage fees down.
RWE was already facing falling gas consumption in the Czech Republic before last winter’s weather became a problem. To a degree, it has managed to offset the decline through sales of compressed natural gas used to fuel vehicles. “We have been in discussions with the environment ministry on ways of applying European funds to revive the 330,000 consumer gas connections that have been idle,” said Martin Herrmann, RWE Česká republika CEO.