GVS: Interview with Michael Rimmler and Helmut Kusterer

In this edition, gas sales will play a major role. The margin squeeze is forcing more and more companies to adjust their business model. In 2016, EnBW was the first company to terminate the sales business to large customers with a very spectacular decision. In the topic of the month, Michael Rimmler and Helmut Kusterer explain how GasVersorgung Süddeutschland (GVS) is coping with the situation. I know, it is only slightly more than a year ago when I visited GVS, but many things have developed and the company has some new ideas. Therefore, I think the second interview was worthwhile. Whether the new platform for tenders, Tender365, will be successful remains to be seen. In addition, this edition will give more radical examples of the consequences for the sales business. ENGIE will abandon the traditional commodity sales business and will in future offer power and gas only in combination with other products and services. ENI will shut down its German sales office completely. And natGAS is still in the process of restructuring the company into a service provider. Until now, profitability has had no benefit from this restructuring, but the contrary has been the case! Tough times and no good outlook for 2018! Further adjustments of companies or market exits can be expected.

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Topic of the Month: GasVersorgung Süddeutschland: Interview with Michael Rimmler and Helmut Kusterer

GVS’ annual result for 2016 was disappointing (ener|gate Gasmarkt 10/17). Only Mr Kusterer is still head of service sales and forcefully tries to push the platform approach. The E-Point portfolio management module ”My Portfolio” is currently being promoted in a big road show. Enough reasons to talk with GVS again! This time, we talked with Mr Kusterer again, as well as with Michael Rimmler, who succeeded Mr Oehler in April this year.

ener|gate Gasmarkt: Mr Rimmler, what is your focus as managing director?

Mr Rimmler: Our business model rests on three pillars. What does that mean? The first pillar is our commodity sales unit for power and gas. What is important to me: Commodity sales mean to offer complex products and not simply scheduled deliveries or flat deliveries. Our keyaccount managers, however, increasingly also offer service products, in other words our platform E-Point. That is the sales issue.

ener|gate Gasmarkt: Just one short interruption: You also sell power, are you successful in power sales?

Mr Rimmler: We have first contracts for flexible power products and power portfolio management. And we also offer power on the platform. Figures are slowly increasing. “Power2Go”, the equivalent to “Gas2Go”, i.e. the pricing and procuring of scheduled deliveries for customers is about to be launched.

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Market Development

FNB Gas Winter outlook

The possibility that the L-gas supply during winter may become tight under certain circumstances was repeatedly reported in this edition. But the Winter Outlook of the association of the German TSOs, FNB Gas, point out a second risk. Under the headline “Peculiarities South Germany” the reason for a potential tightness in South Germany, in particular Baden-Wuerttemberg, is explained. At least until 2022 there will be congestions in that area anyway. The capacity need is increasing due to higher demand. If until 2021 an additional 1.2 GW of new gas fired power plants are built as “special network assets” to stabilise the power networks (see ener|gate Gasmarkt 09/17), this will adds to the capacity demand. In 2022, some network extension shall be finished, which should improve the situation. Currently, the TSOs in Bavaria and Baden-Wuerttemberg are coping with the general tight situation by purchasing flow guarantees. But so far the Baden-Wuerttemberg TSO terranets bw was not able to purchase its need for the winter. FNB Gas mentions this in the Winter Outlook. Another factor makes capacity even scarcer. Until March 2019, some capacity on the TENP pipeline will not be able to be used due to maintenance. The TENP system runs from Bocholtz at the German-Dutch border and Eynatten at the German-Belgium border along the western border of Baden-Wuertemberg down to Wallbach at the German-Swiss border. Baden-Wuerttemberg is physically partly supplied through this system. Some relief is expected from the „flow guarantees in the form of interruptible contracts“ (LiFA), which terranets has just tendered (ener|gate Gasmarkt 10/17). The tender process was finished on November 10, but the deadline by which terranets bw must decide on the acceptance of offers does not end until December 1.

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