Landsberg - Price adjustments in the energy sector are common at the turn of the year.
This year, however, they are coming with great force.
Turbulence on the wholesale market continues to lead to significant increases in prices.
The municipal utilities are not immune to this either.
Their long-term procurement policy may also benefit their customers.
A letter should just have trickled into the house of every Stadtwerke customer - shortly before just short. Because every basic supplier is obliged to inform its customers by letter at least six weeks before a planned change. "Unfortunately, we too have to raise prices," says Christof Lange, Commercial Director at the municipal utilities. The background to this is the enormous increase in prices in the wholesale markets. There is currently a real “price rally” at the start: “Since late summer, energy prices on the stock exchanges have only known one direction - up,” said Lange. The increased global demand, particularly due to the economic recovery after the pandemic, has resulted in an increased demand for coal and natural gas, which has pushed prices up, he explains. Even the long cool periods last winterInsufficiently filled gas storage facilities, lower PV generation and lulls in wind, which meant that more electricity had to be produced in gas-fired power plants this year, all played a part in this development. Last but not least, the planned increase in the CO2 price - to 30 euros per ton in 2022 - will intensify the price increase.
In the case of electricity, the increases are still in the moderate range, says Lange.
A household with an average consumption of 3,500 kWh would pay around 65 euros more per year for its electricity consumption in 2022, which corresponds to a price increase of six percent.
It looks different when it comes to gas prices.
An average household that heats with natural gas and heats water needs around 18,000 kWh per year.
For existing customers, the annual bill will increase by around 470 euros next year, for new customers natural gas will be around 490 euros more expensive than this year.
However, the gas price explosion on the wholesale market is having less of an impact on the end customers of Stadtwerke Landsberg than it is for energy discounters.
"Our customers benefit from a long-term and therefore lower-risk procurement strategy," says Lange.
The municipal utilities buy natural gas in tranches for their customers years in advance.
This ensures a high level of security of supply.
Nevertheless: The price increase is 40 percent.
In comparison: the price of heating oil in November 2020 was around 42 euros per 100 liters of heating oil.
On November 1, 2021, the price had more than doubled to around 90 euros.
A three-person household in a single-family house with an average consumption of 2,800 liters / year must reckon with additional costs of 1,344 euros per year.
Overall, there are currently around 10,000 customers in the energy sector still growing steadily, says Lange.
It remains to be seen whether this will hold up.
Experience has shown that there are still customer changes between mid-November and mid-December.
However, Lange is confident: "Even with the new prices, we will remain competitive and competitive on the market."
Profit in the stream
In the area of power supply (generation, network and sales), the municipal utility's business plan shows a profit of almost 485,000 euros for the coming year. The area with the highest turnover: electricity distribution in Landsberg (power grid). If electricity sales generate a profit of just over 130,000 euros, it is low in gas sales at 800 euros. Also in the plus: the areas of water supply and drainage, with almost 350,000 euros. However, no real profit, as these are cost-covering facilities for which reserves have to be built up. And they have to be balanced again in the next period.
A total loss of 151,000 euros is planned for the coming year. The biggest loss makers, as in the previous year: the Inselbad and the parking garages, with a loss of around 1.1 million euros. The negative effects of the corona pandemic can still be felt here, according to Lange, coupled with the rather bad weather this year. This summer, the Inselbad was only able to book 40,000 guests, in contrast to a "normal year" with around 85,000 guests. However, these are mostly institutions with long-term deficits whose revenues are capped so that they remain affordable.
"We will not be able to generate enough profits from other areas to compensate for the deficits," says Lange.
Nevertheless, he looks confidently into the future and is still counting on profits, especially in electricity sales and other market-economy areas. "