RWE bringing the gas price down for the fourth time in a row

• Natural gas prices for households will decrease 0.6% on average for Q1, 2010
• Benefitting from long-term gas price decrease RWE customers will save thousands of crowns on heating in winter

Prague, 30 November 2009 –Starting from 1 January next year, the RWE prices of natural gas for households will finally decrease 0.6% on average. The people will therefore even in the second half of winter benefit from the long-term gas price decrease continuing already one year already.

“The natural gas prices have stabilised for Q1, 2010 despite the rising prices of oil products and the increase in regulated price components. The final price of gas will slightly decrease for the second half of the heating season for the majority of our household customers,” said Tomáš Varcop, member of the RWE Transgas’s Board of Director responsible for National Sales.

RWE has announced the gas price decrease for the fourth time in a row this year but the prices have already not been rising for five quarters, i.e. longer than one year. The year-on-year average price decrease is 11%. The expenses of households for heating in familily houses will thus appreciably be lower compared to the last winter. “This is, naturally due to the advantageous lower price, but also the current above-average warm weather. The people will save thousands of crowns on heating than in the last cost winter,’ said Varcop.

Thanks to the consirable decrease in its price, natural gas has improved its position towards lignite, a solid fuel most frequently used in households. In contrast to gas, the lignite price has been rising in the last year.

Martin Chalupský
RWE Transgas, a.s. Spokesperson
T 267 974 464, F 267 976 971, E martin.chalupsky@rwe.cz

The prices for the household and small-business customer segments are set for individual calendar quarters and announced 30 days before they take effect. The prices for medium- and large-size customers consuming 4,200-52,500 MWh are set for individual months 30 days before they come into effect.

Natural gas prices are calculated based on the gas procurement cost (influenced by prices of oil products, black coal, and CZK/EUR and CZK/USD exchange rates), and the cost of services provided in the relevant customer segment. The distribution and transmission prices are regulated by the Energy Regulatory Office (ERO).

Prices charged to large-size customers with consumption exceeding 52,500 MWh are determined by a price formula agreed in individual contracts. Visit www.rwe.cz for additional details.
RWE is an international energy group that manages its business activities in the Czech Republic through RWE Transgas, which is responsible for import, transit, and wholesale distribution of natural gas. RWE supplies natural gas to more than 2.3 million end customers through regional gas companies that include RWE Energie, Jihomoravská plynárenská, Severomoravská plynárenská, and Východočeská plynárenská. The RWE CZ Group comprises 17 companies in the Czech Republic.