Press release | 2011-11-29 | 15:00 PM

Hamburg and Vattenfall partners in electricity distribution and district heating

Vattenfall and the City of Hamburg have agreed to operate the electricity distribution and district heating in Hamburg as partners. The City of Hamburg intends to acquire 25.1 per cent of Vattenfall’s electricity distribution and district heating networks in Hamburg. Vattenfall will retain the operational management of the networks.

“With this partnership, Hamburg and Vattenfall make a positive contribution to the further development of the German energy industry at a time of radical policy change”, said Tuomo Hatakka, Head of Business Division Production and Vattenfall’s Country Manager Germany.

The two businesses have been valued by independent auditors at about EUR 1.9 billion. The purchase price for the 25.1 per cent shares in the electricity distribution and the district heating businesses amounts to EUR 463.1 million, of which EUR 138.1 million pertains to electricity distribution and EUR 325.0 million to district heating. Payment is expected to be effected during 2012. Based on the respective purchase price, the City will receive a guaranteed annual dividend of 4.2 per cent for the electricity distribution network and 4.5 per cent for the heat business. The transaction is subject to approval by the Hamburg Parliament.

The cooperation between the City of Hamburg and Vattenfall includes an “energy concept” on future projects of both parties. Its key element is the development of an innovative power plant concept in the Hamburg metropolitan region based on a highly efficient combined cycle plant with state-of-the-art storage technology that allows surplus wind power to be stored as heat. Further measures involve the development of e-mobility and “smart grids”. The total investment volume of all the measures included in the agreement amounts to approximately EUR 1.5 billion over the next five years.

Vattenfall discloses the information provided herein pursuant to the Swedish Securities Market Act.

For further information, please contact:
Stefan Kleimeier, Press officer Hamburg +49 152 546 26977

From Vattenfall's Press Office, telephone: +46 8 739 50 10, press@vattenfall.com

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