E.ON SE is a holding company with headquarters in Dusseldorf, Germany.
Its name comes from the Greek word ‘Aeon’ meaning eternity. It runs one of the world’s largest investor-owned electric utility companies. E.ON is listed in the Frankfurt Stock Exchange and is one of the constituents of DAX 30 Stock Index. Since then, it has embarked on an aggressive acquisition spree for market expansion: entering UK by acquiring Powergen in 2002 and entering the gas market by acquiring Ruhrgas. E.ON has been forced to pay heavy damages for legal issues:
• In 2009, European Commission levied a fine of € 553 million on E.ON and GDF Suez for the MEGAL pipeline. At that time, it was the 2nd biggest fines by the EC and the 1st for energy sector.
• In 2014, UK energy sector regulator Ofgem levied a fine of £12 million for poor sales practices engaged between June 2010 and December 2013. It was the largest penalty levied by Ofgem at that time.
The company was created by the merger of German industrial groups - VEBA and VIAG.
The group is structured on the basis of global locations as well as functional areas i.e. segments. There are nine regional units within Europe, while the non-EU businesses i.e. Brazil, Turkey and Russia are under E.ON International Energy. The reportable segments are Generation, Renewables, Global Commodities and Exploration & Production.
The company adopted a new strategy “Empowering customers. Shaping markets.” 2015 onwards. This is to gain more traction in the world of renewable energy. There is a proposed re-structuring in the coming fiscal in tune with the new strategy, where in the existing company will be divided into two companies:
• E.On: It will take care of the renewable energy sector and involved in increasing smart grids, distributed generation and technical innovations as well as customer solutions
• A New company: It will handle the conventional energy market, focussing on providing cost efficiency in generation and global energy trading.