Europe's largest electricity generators 2011
With a market share of 17 per cent, Vattenfall is the largest generator of electricity in the Nordic countries, through power plants in Sweden, Denmark and Finland.
In Germany, Vattenfall is the third-largest electricity generator, after E.ON and RWE. Also in the Netherlands, Vattenfall is number three after Electrabel (GDF Suez) and Essent (RWE). Overall, Vattenfall is the sixth-largest generator of electricity in Europe.
Profitability of the energy companies' production operations is mainly based on the gross margin (the difference between the price of electricity and the production cost, which in turn is dependent on the type of power, the age of the respective plants as well as the cost of capital.
In the sales market, Vattenfall competes not only with electricity producers but also with a large number of electricity sales companies. In the Nordic countries, Vattenfall has a market share of around 7 per cent (sales to retail customers).
In Germany, Vattenfall's customers are concentrated in the cities of Hamburg and Berlin, where Vattenfall has a market share of approximately 80 per cent in the total retail segment. However, in Germany as a whole, Vattenfall has a market share of approximately 8 per cent.
In the Netherlands, Vattenfall currently sells electricity under the "Nuon – part of Vattenfall" brand. The Vattenfall brand will be gradually introduced in the Dutch market. Nuon has a market share of just under 30 per cent of electricity sales to retail customers in the Netherlands.
Price is the most important competitive factor – however, package solutions and customised solutions for customers' energy needs are growing increasingly popular. Profitability is steered mainly by the company's ability to secure margins between purchases and sales of electricity, and by having a cost-efficient sales organisation.
Sales of heat
Vattenfall is a leading player in the district heating sector in Germany and among the five largest in Sweden, the Netherlands and Denmark.