Customers of Stadtwerke Gießen AG (SWG) can expect new prices at the beginning of the year. Manfred Siekmann, CEO of SWG, comments on the price development in 2005: "In the coming year, we would like to keep the water price constant until the middle of the year. The current price level for standard products in the electricity supply sector (general tariff and PowerPack) will also remain the same, at least in the first quarter of next year. However, the prices for natural gas and district heating will rise." ElectricityThe prices of the PowerPack Private electricity supply contract remain unchanged. The labour price for annual consumption of up to 6,387 kilowatt hours is 14.45 cents per kilowatt hour (Ct/kWh). The basic price remains at 99 euros per year. The Giessen-based energy and water supplier has also not planned a price increase for the general tariff. The current price level of 16.30 Ct for each kilowatt hour consumed and the fixed basic price of EUR 55.10 per year will therefore remain unchanged for the time being.WaterIn the area of water supply, SWG is keeping the volume price and the billing prices constant. Customers will continue to pay EUR 2.05 for one cubic metre of water. A standard household water meter costs 30 euros per year. Natural gas and district heating "In contrast to the electricity and water supply, where we have a better influence on the cost situation from our own assets, we are contractually bound to the development of oil prices for the gas supply and must therefore also pass on this price increase," says Siekmann, explaining the price increase.The trend towards rising prices for natural gas and district heating has already become apparent in recent months. On 1 January 2005, Stadtwerke will increase its natural gas and district heating prices. Both the labour prices in the general gas supply tariff and the labour prices in the heating tariffs will rise by 0.20 cents gross. The basic price will remain constant. For customers who use the general gas supply tariff and have an average consumption of 3,000 kilowatt hours per year, the price will rise by 2.84 per cent. This corresponds to a monthly increase of 0.50 euros. Anyone who heats with natural gas and has an annual consumption of 30,000 kWh will pay 5.00 euros more per month. This corresponds to an increase of 4.49 per cent. SWG is also adjusting its district heating prices. Here, the increase in labour prices per kilowatt hour amounts to 0.50 cents gross. The annual performance price per kilowatt of power provided remains constant. Customers with an average annual consumption of 16,000 kWh will pay 6.67 euros more per month in future. This is a price increase of around 9 per cent and is due to the rise in heating oil prices since spring. Despite the increasing doubts about the link between gas and heating prices and oil prices, SWG still considers it appropriate to base prices on the oil price. This is because the price of natural gas is a market price. The most important competitor in most European countries is heating oil as the relevant "energy lead currency" because it can replace natural gas in many applications. Natural gas can therefore not decouple itself from price developments on the primary energy markets. An increase in the price of natural gas and district heating is unavoidable if the price of heating oil rises, as it has this year. "Even with the new gas and heating prices, we will not need to shy away from comparison with the competition. Because our prices will continue to be competitive," says Siekmann.
17.12.2004