E.ON gives fresh impetus to competition

Dusseldorf, Germany (ots) - E.ON is taking the initiative to step
up competition in the electricity and gas market and has adopted a
comprehensive set of measures designed to achieve this goal. At
today's annual conference of the German Federation of Industrial
Energy Consumers (VIK) in Berlin, Johannes Teyssen, member of the
Board of Management of E.ON AG, presented the first few building
blocks for the future development of the German electricity market.

Each new power plant that is built by competitors in E.ON's
service area is to be quickly connected to the grid. Should this lead
to grid bottlenecks, these will be compensated for by feeding less
electricity from all the power stations in the service area,
including E.ON's own plants. This means that E.ON is giving an
impetus for the construction of new power stations and for an
increase in the supply of electricity in Germany. The improvement of
the electricity exchange with neighboring countries serves the same
purpose. As a first step, E.ON is planning to increase its
cross-border transportation capacity by approx. 1,000 MW within a
short period of time; this is roughly equivalent to the output of a
nuclear power station. In addition, E.ON will make available
considerable additional capacity for an international exchange of
electricity by means of a further expansion of its grid. At the same
time, this will be an important prerequisite for bringing electricity
trading up to a European dimension. To this end, E.ON will actively
participate in combining the various national electricity exchanges
and in building up European trading centers.

In order to quickly improve the liquidity and transparency of
electricity trading, E.ON will immediately start doing more
transactions via public trading centers as of now. On the other hand,
the company will reduce the volume of its direct trade with
electricity sellers or buyers. In April 2006, the company already
started informing all trading players about the generation capacity
available on the following day - which is important information for
an assessment of the probable supply situation.

Johannes Teyssen commented: "We are convinced that there is only
one strategy to prevent high energy prices: Rapid and intensive
Europeanization and an even stronger focus on competition for both
markets and companies. With the measures that we have announced, we
will step up the intensity of competition in the energy market, not
only in Germany but also in Europe as a whole. For customers, this
will yield more than nonsensical regulatory interventions which, in
the final analysis, lead to less competition and higher prices."

This press release may contain forward-looking statements based on
current assumptions and forecasts made by E.ON Group management.
Various known and unknown risks, uncertainties and other factors
could lead to material differences between the actual future results,
financial situation, development or performance of the company and
the estimates given here. These factors include those discussed in
our public reports filed with the Frankfurt Stock Exchange and with
the U.S. Securities and Exchange Commission (including our Annual
Report on Form 20-F). The company assumes no liability whatsoever to
update these forward-looking statements or to conform them to future
events or developments.

Originaltext: E.ON AG
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ISIN: DE0007614406

Contact:
Josef Nelles
Tel. +49-211-4579-544