E.ON Ruhrgas AG's Chief Executive Bernhard Reutersberg said Wednesday that network regulation in Germany is making the profitable operation of gas grids ever harder.
"It is increasingly difficult to generate (adequate) returns on investment in Germany and we're intensively discussing this issue with the regulator," Reutersberg said at a conference in Munich.
Ruhrgas, the natural gas arm of utility E.ON AG (EOA.XE) is Germany's largest gas importer and network operator.
E.ON reached a deal last week to sell off its electricity transmission networks and some power generation assets to settle a European Commission antitrust probe. E.ON Ruhrgas also faces an antitrust probe from the European Competition Commission.
Although Reutersberg didn't specifically say that E.ON rejects a sale of its gas network, he said there was a need to differentiate between electricity and gas grids.
Reutersberg said there is a difference between gas and power networks, adding that gas networks are more closely linked to the trade of natural gas.
His comments echo those made by Dieter Pfaff, Senior Vice President of the Gas Policy Supply Division at E.ON Ruhrgas, who Tuesday said that it is important gas grid operators have grid and storage facilities in their hands.