For RWE the recently announced sale of its Hungarian assets forms part of the reorganisation of its conventional generation division, accompanied by cost-cutting in its renewables and network spin-off, Innogy.
RWE’s gas, hard coal, hydroelectric power and biomass generation will form RWE Generation under CEO Roger Miesen. RWE Power will run the company's lignite coal-fired generation, and its nuclear energy interests under CEO Frank Weigand, who is also the company’s CFO.
"We decided last year to make our electricity generation companies more flexible, while aligning them more closely to their respective energy sources,” commented Rolf Martin Schmitz, RWE group CEO. The company will now have three business segments – Lignite & Nuclear, European Power (gas, coal, hydro, and biomass), and Supply & Trading.
Innogy’s is flagging up a major cost-cutting exercise. It is being run temporarily by
Uwe Tigges, chief human resources officer, following the resignation of Peter Terium, who left the company following a disagreement over company strategy. The company says it will focus growth on its core activities and on expansion of e-mobility, broadband and its solar business, while also examining potential cost cuts and investment revisions across all parts of the business.
Further details should be forthcoming in March with publication of the company’s annual results.