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Stromnetz Hamburg secures concessions for operating the power distribution grid in Hamburg with the support of Allen & Overy

12 November 2014

Allen & Overy LLP advised power distribution company Stromnetz Hamburg GmbH in its successful bid for electric distribution concession rights in the City of Hamburg. The Hamburg Senate approved the conclusion of a concession contract with Stromnetz Hamburg GmbH at its meeting on Tuesday, 11 November 2014. The contract has a 20-year term and is accompanied by a cooperation agreement in which the city governors and Stromnetz Hamburg GmbH have set out their principles for future-oriented power grid operations.

The decision was preceded by a tender procedure in line with the German Energy Act (Energiewirtschaftsgesetz) executed by the Urban Development and Environment Office (Behörde für Stadtentwicklung und Umwelt; BSU). The procedure was launched with the Europe-wide announcement in December 2012 of the intention to re-award the concession. Initially, six companies expressed their interest in the concession, but all except Stromnetz Hamburg GmbH withdrew their applications again during the course of the tender process, thus allowing the new contract with Stromnetz Hamburg GmbH to be negotiated.

The electricity distribution grid is comprised of several high, mid- and low voltage sub-networks with a total length of approx. 27,541 km. It is connected to the upstream transmission grid via a number of substations. The distribution grid delivers power to around 1.8 million customers in the Hamburg area and is equally available to all users, irrespective of their contracted power supplier.

The Allen & Overy team was jointly led by partner Dr. Olaf Otting (public law, Frankfurt) and senior associate Dr. Fabian Christoph (M&A/corporate, Hamburg) and comprised partner Dr. Helge Schäfer, counsel Dr. Rüdiger Klüber (both M&A/corporate, Hamburg) and senior associate Dr. Udo Olgemöller (public law, Frankfurt).

The in-house project team at Stromnetz Hamburg GmbH included Thomas Grosche (Head of Legal/Regulation), Dr. Vanessa Liebert and Raik Apel (both regulation management). At BSU, the tender procedure was headed up by Jan Koops and Gisela Granzin.