Stadtwerke Gießen will operate the electricity and natural gas grid in Linden for a further 20 years. This is provided for in the two newly concluded concession agreements.
In order for energy suppliers to be allowed to operate their grids in towns or municipalities, they need the consent of the respective local authority. This so-called concession is usually granted by the political bodies for 20 years and separately for the electricity and natural gas sectors. The town councillors of Linden have once again awarded such concessions to Stadtwerke Gießen (SWG). The company will be responsible for the efficient, reliable natural gas and electricity network infrastructure in Linden over the next two decades. On 27 May 2024, Mayor Fabian Wedemann, Matthias Funk, Technical Director of Stadtwerke Gießen, and Jens Schmidt, Commercial Director of SWG, signed the corresponding contracts. First City Councillor Harald Liebermann signed the document in advance due to being on holiday. "We are looking forward to continuing the good cooperation of previous years," explains Fabian Wedemann and Matthias Funk adds: "We will do everything in our power to justify the trust placed in us."
Plenty of lead time
The signing of the contract marks the end of two processes that have been dragging on for several months. The city of Linden announced back in December 2021 that the two easement agreements would expire at the end of December 2023. As the concessionaire, SWG provided all important network data at this point. Background: The announcement in the Federal Gazette is the signal for all companies wishing to apply for a concession. Certain information is therefore needed so that potential competitors know what is at stake.
In fact, there was a competitor for the electricity licence. However, no other company applied to operate the natural gas network. As a result, those responsible at the town of Linden and SWG were able to concentrate fully on organising the contract from the outset. "After negotiations on an equal footing, we came to a really good result," says Mayor Fabian Wedemann happily.
In future, SWG will give the municipality more time to coordinate the necessary construction measures. In addition, the current contract contains all the typical updates relating to environmental aspects and new technologies. Last but not least, SWG has also submitted a highly attractive offer to the town of Linden from an economic perspective, which did not require any renegotiation on the part of the municipality. "For us, it is a requirement of fair dealings with one another not to insist on demands, but to find sensible solutions. A 20-year partnership can only work if everyone is satisfied in the long term. And we attach great importance to this," Jens Schmidt summarises.
Only part of the urban area
In contrast to the gas network, which SWG operates throughout Linden, Stadtwerke Gießen has always only been responsible for a relatively small area of Linden's electricity network: Bergwerkswald and Oberhof. Nevertheless, the awarding of this concession proved to be much more complicated. This was because the competitor withdrew late and did not submit a binding offer. By this time, however, the city had already sent out the procedural letter and thus set in motion a legally stipulated, complex procedure. "On closer inspection, it probably turned out to be difficult to integrate these two sections into our own network. Ultimately, the only thing that matters is that we agreed a contract with the town of Linden that suited both sides," says Matthias Funk. Mayor Fabian Wedemann agrees: "We have always been extremely satisfied with SWG's work. I assume that this will not change."