47Combined Group Management Report Consolidated Financial Statements Corporate Governance Report Supervisory Board and Board of Management Tables and Explanations E.ON Gastransport will be migrated to incentive-based regu- lation in 2010. Prior to migration, the BNetzA will conduct a benchmarking of Germany's small and very heterogeneous group of supraregional gas transmission pipeline operators. The individual efficiency factor will depend to a large degree on the parameters used in the benchmarking and will have an impact on the revenue cap. On December 29, 2009, the French constitutional council rejected draft legislation introducing a tax on CO2 emissions. The French government then decided to extend the tax to industries, particularly thermal power generation, that already participate in the EU-wide Emissions Trading Scheme ("ETS"). Under discussion is possible compensation for the companies affected by the carbon tax, compensation that would take into account their position in the international marketplace and each industry's respective energy intensity. The tax is expected to take effect on July 1, 2010. The Netherlands is currently drafting legislation that would require the country's TSOs to give preferential treatment to renewable-source electricity and define rules for managing any resulting bottlenecks. If the proposed legislation is enacted, it and the actual occurrence of bottlenecks could adversely affect our power stations in the Netherlands. The European Commission, the European Parliament, and the member states approved the third legislative package. In addi- tion to the complete legal unbundling of electricity and gas TSOs, the legislative package allows the establishment of an independent transmission operator ("ITO") or an independent system operator ("ISO"). The third legislative package will affect the entire value chain and will grant national and European regulatory agencies far-reaching new authority to intervene in markets. Risks result not only from the increased scope of intervention options, but also from the legislation that the member states enact to transpose the third legisla- tive package into national law, which could go beyond the package's guidelines. In addition, the European Commission, the European Parlia- ment, and the Council passed the green legislative package whose purpose is to enable the EU to achieve its climate targets. By 2020, renewables are supposed to meet 20 percent of the EU's energy consumption, while greenhouse-gas emissions are to be reduced by 20 percent from 1990 levels. ETS emission allowances have so far been allocated at no cost. No-cost allocation will gradually be replaced by the auc- tioning of allowances. Starting in 2013, power producers will have to acquire all of their allowances through auctions. The number of allowances will be reduced each year. Indus- tries not subject to the ETS will also have to reduce their emissions in accordance with national targets; a portion of the fuel they use must come from renewable sources. The EU will provide financial support for the development of car- bon-capture-and-storage technology.The green package will have a profound impact on the future generation mix, network infrastructure, and market rules. We try to manage these risks by engaging in an intensive and constructive dialog with government agencies and policymakers. IT Risks The operational and strategic management of the E.ON Group relies heavily on complex information technology. Our IT sys- tems are maintained and optimized by qualified E.ON Group experts, outside experts, and a wide range of technological security measures. In addition, the E.ON Group has in place a range of technological and organizational measures to counter the risk of unauthorized access to data, the misuse of data, and data loss. Management's Evaluation of the Risk Situation During the year under review, the risk situation of the E.ON Group's operating business changed relative to the prior year due to the current economic environment. In particular, sus- tained low price levels in commodity markets and a lasting and significant reduction in demand, particularly from indus- trial customers, could, over the medium term, have a sub- stantial impact on the E.ON Group's earnings situation. From today's perspective, however, we do not perceive any risks in the future that would threaten the existence of the E.ON Group or individual market units. Disclosures on the Internal Control System for the Accounting Process Disclosures pursuant to Section 289, Paragraph 5 of the German Commercial Code, which are part of the Combined Group Management Report, are on pages 164 to 166.