Stadtwerke Gießen AG (SWG) is increasing its water prices as of 1 August 2005. The reason for the increase is the high fixed costs that dominate the water supply. The municipal utilities have kept the water price constant since January 2003 - now they are bringing the billing prices a little closer to the actual cost structure. New pricesThe cost of a standard household water meter will rise by 12 euros (gross) per year. From August, the meter will cost 42 euros instead of 30 euros per year. The volume price, on the other hand, will remain constant: Giessen drinking water will cost 2.05 euros per cubic metre (m3). An average household with an annual consumption of 155 cubic metres of water will in future pay 359.75 euros (gross) per year instead of 347.75 euros (gross). The increase of 1 euro per month (12 euros per year) corresponds to an average increase of 3.45 per cent. SWG does not need to be informed of the meter readings as the volume price does not change.price and cost structureThe cost structure in the water supply sector is characterised by high fixed costs and low variable costs. Conversely, prices are characterised by a strong preponderance of variable prices (volume price). The transfer prices are comparatively low. There is therefore an imbalance between the price and cost structure. The municipal utilities want to counteract this imbalance by increasing the transfer prices. This is because the fixed costs for the water network will remain constant, even if SWG's water sales continue to fall in the future. Due to the fall in water sales and the increased costs for the refurbishment of the network, the figures for SWG's water supply were significantly lower than planned last year.In order to allow consumers to participate in the high maintenance and infrastructure costs regardless of consumption, the municipal utilities, like most water suppliers, have a pricing system that consists of a basic price or transfer price for these costs and a volume price for the water consumed.SWG can be seen in comparisonEven with the new prices, the municipal utilities can be compared with other water supply companies. An average customer with an annual consumption of 155 m3 pays 359.75 euros per year at SWG, compared to 388.15 euros per year in Wetzlar. In Marburg, the same amount of water costs 368.97 euros per year and at the Zweckverband Mittelhessischer Wasserwerke 373.43 euros per year. This means that SWG continues to be one of the cheapest water suppliers in Central Hesse.
21.07.2005