District heating - optimal utilization of primary energy

District heating is the third-largest business segment of the MVV Energie Group in terms of sales and its operating earnings (EBIT) contribution before IAS 39. District heating based on cogeneration has witnessed a political renaissance due to the Federal Government’s energy and climate programme. The construction and modernisation of cogeneration plant and expansion of related district heating grids are being subsidised by the Federal Government with up to Euro 750 million a year.

Sales volumes in the district heating segment fell in the financial year 2008/09 year-on-year by 624 million kWh (– 11 %) to 4 937 million kWh, while sales dropped by Euro 9 million (– 3 %) to Euro 294 million. These reductions were largely due to a deconsolidation item. Excluding the sales volumes supplied in the previous year through to the sale of the Polish shareholdings (639 million kWh), our district heating turnover showed a slight year-on-year increase of 0.3 %. Sales in the district heating segment excluding the Polish deconsolidation item (Euro 26 million) grew year-onyear by Euro 17 million (+ 6 %).

Adjusted EBIT in the district heating segment decreased by Euro 2 million to Euro 36 million (– 5 %). This reduction was attributable in particular to the deconsolidation of our Polish activities in the previous year.