Luebeck Rescues Its Muni

摘要

Substantially poorer earnings at municipal utility Stadtwerke Lubeck have upset the balance of financial cross-bracing between the energy and public transport sectors in the city. The utility is running out of funds and faces bankruptcy unless rescued. The city is stepping in to help.rnThree main factors have combined to reduce profits at Stadtwerke Lubeck. These are a substantial fall in electricity and gas network usage fees due to sharper regulation since 2007, additional costs of €3-4 million that cannot be passed on to customers that have arisen out of the obligation to take up renewables-generated power under arrangements that suffer from poor forecasting, and problems in marketing heat from unit type cogeneration plant. Net profits plummeted from a steady €20 million/year to only about €7.7 million in 2007, although an improvement to about €10 million is expected for 2008, according to a company spokesman.