05.06.2024
Source: Energy & Management Powernews
The implementation of the electricity, gas and heat price brakes was the dominant topic for municipal utilities in 2023. This is one of the findings of BDEW and EY in the 2024 municipal utilities study.
For more than 40 percent of municipal utilities, the implementation of price brakes was the dominant issue last year. Due to the effort involved, many municipal utilities were so busy operationally that they were less able to tackle future tasks, explain the German Association of Energy and Water Industries (BDEW) and the auditing firm Ernst & Young (EY) in a press release on the current municipal utility study. A total of 100 municipal utilities and regional energy suppliers across Germany were surveyed for this purpose.
However, heat planning is an important exception to this. "In 2023, the impact of the heating transition on the business and strategy of municipal utilities was one of the top 3 topics that companies were dealing with," said the authors of the study. Metin Fidan, Partner at EY, added that heat planning is now "no longer an optional strategy". "Municipal utilities should clearly work together with their local authorities on their local heat plans," said the expert.
Kerstin Andreae, Chairwoman of the BDEW Executive Board, also called for the early involvement of municipal utilities in heat planning by local authorities. After all, local suppliers are the ones who know the local infrastructure, local heating potential and building and social structures best. They can therefore provide citizens with important assistance.
According to the survey, 99 percent of municipal utilities are involved in the preparation of heat planning by the municipality. However, this is necessary simply to provide the necessary data. 64 percent are very satisfied or satisfied with the cooperation in the preparation of heat planning.
Patchwork is closed
The resolution of the Heat Planning Act finally closes the patchwork of individual regulations in heat planning, but in order to be able to implement the heat transition at the required speed, municipal utilities also need additional sources of funding, according to the authors.
According to the information provided, the study participants would above all like to see more extensive and more efficient funding for investment measures. For example, 79 percent described the federal funding for efficient heating networks (BEW) as insufficient. "Clear framework conditions are therefore essential for implementing the energy and heating transition," the authors concluded.
In addition to heat planning, municipal utilities also named digitalization, including IT security, and the recruitment of qualified employees as their most important topics at the moment (87% each). The expansion of renewable energies came in fourth place with 80 percent.
Almost two thirds of municipal utilities (64 percent) stated that 2023 was a successful year in terms of business despite an "enormously difficult market environment". However, this "should not obscure the fact that only 37% still expect good to very good business success in the future". Just two years ago, almost twice as many respondents (60%) were optimistic about the coming year.
In parallel, more and more municipal utilities are reportedly pursuing an end-to-end decarbonization strategy. When asked about a "genuine decarbonization strategy", which the authors define as transformation solutions for customers and their own company, the proportion of municipal utilities with such a strategy rose from 29 percent in the two previous years to 39 percent in 2023.
The Stadtwerke-Studie 2024 by BDEW and EY is available online.
Author: Jonas Rosenberger
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