, Columnist
EON and RWE Just Killed the Utility as We Know It
The burden of being an all-singing, all-dancing power giant is too great.
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A decade ago, EON SE and RWE AG were two of Germany’s most valuable companies and their businesses were roughly similar: they generated power (much of it from coal and nuclear), ran energy networks and sold electricity to end consumers.
The complex asset swap and share issue they announced over the weekend -- including the divvying up of RWE-controlled Innogy SE's assets -- is the last death knell for that all-encompassing model. EON will become a company focused purely on energy networks and retail customers, while RWE will combine the two companies' renewables businesses.