Supervisory board approves reorganization of RWE

The RWE supervisory board approved the proposal of the executive board of RWE AG to transform the management holding into an operating company and to merge most of the German RWE companies within it.

The massive transformation of the energy market in recent years, and in RWE’s core markets in particular, have posed major challenges for RWE and the company has to be able to adapt accordingly. For this reason, RWE began as far back as 2012 to align the management of business areas along the value chain, independent of legal entities.

The change in management structure that has now been decided upon, as well as the change of RWE AG from a management holding to an operating company, supports the further development and streamlining of this management model.

In line with this, the functional management will be assumed by operating board members (chief operating officers) in the RWE AG management team, who will be responsible for conventional power generation, retail, grid and renewables.

These four COOs on the RWE AG board 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 cease to exist, although this does not necessarily mean their management responsibilities will change. Details of implementation will be decided upon in the coming months. The changes will be implemented by 1 January 2017. The new RWE AG will be very closely aligned to its customers and to the operating business.

“Country Chairs” are part of this restructuring process. They will be responsible for steering and optimizing countrywide 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.

Being “One RWE” means reducing the number of companies in Germany through merging them. Within the new RWE AG, in particular the supply and networks business will be integrated, together with their employees, as will the service companies. The employees of RWE Vertrieb AG and RWE Deutschland AG will be integrated into RWE AG. Westnetz GmbH will remain an independent company as the law requires that generation, supply and grids must remain separate (unbundling). Companies such as RWE Group Business Services GmbH, RWE IT GmbH and RWE Effizienz GmbH will be integrated into RWE AG.

Currently, RWE Generation SE/ RWE Power AG, RWE Innogy GmbH and RWE Supply & Trading GmbH are not affected by the merging process with RWE AG. RWE Generation SE will be integrated into RWE Power AG which will be renamed RWE Generation AG. These companies will remain legally independent, but will be steered by one COO at RWE AG respectively.

The trading business will continue to be represented on the executive board by the CEO of RWE AG. 

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