POWER UTILITIES PREPARE FOR MARKET COMPET ITION

The power industry is facing a fundamental paradigm shift fi-om region al protection (a monopoly situation) to competition. German power util ities are systematically preparing for the future mode of operation. C ompetition is not a fundamentally new principle in the German electric ity market. Indeed, industrial electricity generation has been an area of strong competition for some time already. Moreover, a spot market for short-term electricity supplies has existed in the West European i ntegrated power system for decades. Still, competition Sor customers a mong power utilities will entail a fundamental change. In an effort to align with the new requirements, power companies for years have used rationalization, re-engineering, development of new business al eas, a nd the exploitation of potentials for cost reduction. The industry is preparing for competition in order to acquire a good position for the future.