The report investigates the complex ownership structure of the German energy market and demonstrates the extent to which the larger market players are vertically integrated into retail operations. The study gives full market information concerning prices and volumes of gas and power sources.

• Interrogates each key segment of the value chain - Networks, Wholesale & Procurement and Distribution & Retail
• Uses Datamonitor's German Utilities Equity Database to uncover the indirect influence of the Verbund companies at the retail level
• Demonstrates how the variability of access charges are suppressing competition from pure retail operations by squeezing margins at the retail end
• Discusses the likely approach of Germany's new energy regulator to competition issues

Using Datamonitor's German Utility Equity Database, which permits the clear identification of ownership structures in a complex market, we discover that Verbund own 57% of the equity in power customers and 43% in gas. This was mapped against their interests across the 917 regional utilities and Stadtwerke.

The Verbunds remain structurally long in Germany, while smaller players and their municipal and private owners are structurally short.

Datamonitor analysis of costs facing retailers demonstrates that they face margins of less than 5%, leaving them little margin to discount in order to gain market share. This can be partly explained by the high and variable access charges, an issue that the new regulator is currently reviewing.

• Understand the optimal strategies for smaller players given the position of the Verbund
• Discover where opportunities might arise in light of the RegTP's position on access charges
• Understand the structural hedge for the Verbund & smaller suppliers