RWE to Reduce Gas Price Again in First Winter Months

• Average household price to fall by over 11% overall this year
• RWE expects no further price drop in the first quarter of 2010

Prague, 27 August 2009 – RWE Group CZ customers will save on natural gas costs starting in the first cold months of this year's heating season. As of 1 October, the final price of natural gas the RWE Group CZ supplies to households will be reduced by an average 2.5%.

"The reduction of natural gas prices in the fourth quarter mainly reflects a favorable development of the exchange rate between the Czech crown and the American dollar. In contrast, the prices of oil derivatives are growing, which will affect prices in the subsequent quarter. That is also why we do not expect another drop in prices at the beginning of 2010," said Tomáš Varcop, the member of the RWE Transgas board of directors responsible for national sales.

Since the beginning of the year, the price of natural gas RWE Group CZ supplies to its customers has been reduced for the third time; overall, the average household price has fallen by over 11%. That translates into close to a 3,000 crown reduction of annual gas costs in a household using natural gas for heating, making hot water, and cooking.

The most extensive price drop since the beginning of the year has taken place in South Moravia, where prices will have fallen by an average 13.3%.

The crude oil price grew in the first half of this year by approximately USD 20 per barrel. This key factor will slow down the declining trend of natural gas prices at the beginning of next year. However, forecasts indicate that prices will not necessarily grow; the household gas price will likely remain at the level of this year's fourth quarter. "We expect that the price of natural gas will remain stable at the start of 2010," added Varcop.

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 19 companies in the Czech Republic.