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City Day President Markus Lewe: "The situation for the public utilities is getting worse every day"
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Martin Schutt / dpa
Due to the energy crisis, the German Association of Cities has warned of risks threatening the existence of municipal utilities.
President Markus Lewe said: »For the stability of our country and the trust of the citizens in the state, it is essential that the cities ensure the supply comprehensively and reliably.«
It's not just about energy, according to the CDU politician, but also about water supply, garbage disposal and street cleaning.
If municipal utilities got into trouble, there was a risk that basic services would fail.
In a letter to Chancellor Olaf Scholz (SPD), Vice-Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP), the City Council and several mayors are again pushing for a rescue package for threatened municipal utilities.
Among other things, a state guarantee framework, liquidity support for energy procurement and help in the event of impending payment defaults are necessary.
Many customers will probably no longer be able to pay their bills
Lewe said: "The economic situation for the municipal utility company is getting worse every day." The increased prices for gas and electricity multiplied the need for liquidity.
“In addition, many customers will probably no longer be able to pay their energy bills.
The municipal utilities will not simply turn off the tap here.
They are committed to the common good and will continue to supply these customers as well,” explained the Lord Mayor of Münster.
In addition, a threatening chain reaction could arise if a supplier had to catch customers of another insolvent supplier.
Even now, municipal utilities could hardly make any follow-up offers for expiring contracts.
"This means that numerous commercial and industrial companies will no longer receive energy supplies in just a few weeks." The first cities have already had to support their suppliers.
However, not every city as the owner can close such gigantic financing gaps, especially not over a longer period of time.
Gas price brake demanded
The city council called for a gas price brake in addition to the planned electricity price brake.
Rising gas prices in particular are heating up the price spiral, said Lewe.
"We feel the growing pressure on site." Citizens, companies, trade and of course the cities are burdened.
A gas price brake would address everyone's concerns.
It's about the cohesion of our society, the energy crisis must not lead to an ordeal.
Energy market experts are also campaigning for state support for threatened municipal utilities.
One possibility could therefore be that the public sector steps in with pre-supply contracts and can thus offer the public utilities a fixed price when purchasing energy.
sol/dpa
