Concern about production and value creation is high: In a letter to Chancellor Scholz, medium-sized companies and the association of municipal companies therefore advocate a protective shield for municipal utilities. This would not only serve to ensure security of supply.
Small and medium-sized businesses and the Association of Municipal Enterprises (VKU) are warning of the collapse of German municipal utilities. In an open letter to Chancellor Olaf Scholz, they call for even more courageous commitment from the government. “Only if the state intervenes massively as a guarantor will we be able to maintain production and value creation,” write the BVMW SME association and the VKU in it.
In view of the sharp rise in energy prices in the course of the Russian attack on Ukraine, the supply for medium-sized companies would otherwise be in danger. “That’s why there’s a lot of pressure to act.” The Stadtwerke fought more and more often with liquidity problems. “The victims are medium-sized companies that are getting fewer and fewer offers for new energy supply contracts from their suppliers. Far too often it is currently becoming impossible to get any supply offers at all.”
Both associations advocate a protective shield for municipal utilities. This would serve to ensure security of supply and thus help the entire economy, said VKU general manager Ingbert Liebing, whose association represents over 1500 municipal utilities and municipal companies. Specifically, the two associations are calling for more government loans and sureties or guarantees to secure liquidity in order to hedge the default risk of trading partners on the stock exchange. There should also be an insolvency moratorium for industry, commercial enterprises and energy companies.
Around two weeks ago, municipalities and municipal energy suppliers urgently requested support for the municipal utilities. “Especially in the areas of procurement and securities, discounts and price adjustments as well as billing and payment defaults, the current situation on the energy market is leading to major problems for energy suppliers,” said a statement published at the Prime Ministers’ Conference in Hanover.
