RWE streamlines company to make it ‘future-proof’

Boss Terium says changes will make RWE ‘fit for the new energy world’

The board of Germany‘s largest power producer RWE has approved a radical restructuring and streamlining of the company.

The changes have been driven by what the company calls the “massive transformation of the energy market in recent years” and chief executive Peter Terium (pictured) said yesterday that they would ensure RWE was “fit for the new energy world” and would “make the group future-proof”.RWE chief executive Peter Terium

RWE AG will be transformed from a management holding into an operating company and will also merge most of the German RWE companies within it.

Functional management will be assumed by chief operating officers for four areas: conventional power generation, retail, grid and renewables.

In a statement, RWE said: “These four chief operating officers will also be responsible for the respective business areas that already exist. The current COO position that covers all business areas will cease to exist. Thus, there will ultimately be seven top management functions instead of the current eight ” and at the same time the RWE AG executive board will be aligned more closely to the operating business.”

In addition, the board committees and management boards of the integrated companies will also cease to exist.

The fine tuning of these changes will be decided upon in the coming months, ready for the overhaul to be implemented by 1 January 2017.

Following yesterday’s extraordinary meeting in which the RWE Supervisory Board gave the go-ahead for the changes,Peter Terium said: “Back in March we announced that we would look closely at the group structures in Germany in order to develop a plan for a more efficient structure. These changes are further milestones on the path towards making RWE fit for the new energy world and to becoming one RWE.”

Terium said that ‘country chairs’ are a key part of the restructuring process: “They will be responsible for steering and optimising country-wide and overarching functional tasks. They will also be the central contact partners for our external stakeholders in the countries, such as government or regulatory bodies. Generally this role will be assumed in addition to existing tasks.”

RWE believes that by pooling its companies, it will cut bureaucracy, make its processes leaner and reinforce co-operation within the company.

“The new RWE will be faster and more flexible ” as the far-reaching changes on the energy market demand,” said Terium. “What we now need more than ever before is a strong operating core for the group.”RWE streamlines business

The management streamlining will particularly affect the fully-owned RWE companies in Germany, where seven of the previous ten supervisory board committees will no longer exist ” including all associated administrative tasks, preparation and decision-making processes.

The employees of RWE Vertrieb and RWE Deutschland will be integrated into RWE. Westnetz GmbH will remain an independent company because German law states that generation, supply and grids must remain separate. Companies such as RWE Group Business Services, RWE IT and RWE Effizienz will be integrated into RWE AG.

Those companies not currently affected by the merging processare RWE Generation / RWE Power, RWE Innogy and RWE Supply & Trading.

Terium said that he was convinced that “RWE should remain positioned along the entire value chain” and that “the new structure of the Board reflects this. We are one RWE and we want to stay that way. But without change, we cannot make the group future-proof. Now is the time to pull even closer together.”

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