AUSTRIA: VERBUND TO CUT COSTS

Article Abstract:

The big Austrian power company Verbundgesellschaft aims to gain savings of just over Sch 2bn by year 2003 in order to maintain its position on the deregulated energy market. The company has to cut electricity price by about 25%. In September 1999 the Verbund subsidiaries Donaukraft, Tauernkraft, Verbundkraft and Verbund Elektrizitatserzeugungs-Gesellschaft (VEG) will merge. Subject to an agreement with the Carinthian government, also Draukraft (in which Carinthian power company Kelag owns a 49% stake) will join the new company, which would then have a balance sheet total of about Sch 66bn. With 52 power stations with a combined capacity of 19,000 GWh, the new group would cover 40% of Austria's marketed power production. Savings of Sch 1bn are to be achieved by cutting the number of staff at the power generating companies from 2,000 to 1,300. Further savings are expected from the improved co-ordination of power stations by means of automation.

Financial management, Capacity

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AUSTRIA: UTILITIES TEAM UP IN POWER PURCHASES

Article Abstract:

Seven municipal utility companies in Austria have agreed upon cooperation in electricity purchasing, production and trading. Participants in the arrangement titled City Strom are the utility companies of Graz , Innsbruck , Kapfenberg , Klagenfurt , Linz , Salzburg and Wels. Between them they sell 800 GWh of electricity annually, which corresponds to just under 20% of Austria's electricity consumption. The deregulation of the electricity market is putting pressure on the utilities to cut prices. So far ESG of Linz and Bewag are the only power suppliers in Austria that have cut electricity rates for private households. The partners of City Strom already co-operated within the telecoms company Citykom.

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AUSTRIA: NEW ELECTRICITY PARTNERSHIP IN THE WEST

Article Abstract:

Following the termination of the electricity supply agreement between Vorarlberger Illwerke and Verbundgesellschaft , Vorarlberger Kraftwerke AG (VKW) is terminate a similar agreement with Verbund with effect from the end of 1999. Instead, it is to cooperate with Energie Baden-Wurttemberg (EnBW) of Germany. Both the old and the new deal involve annual deliveries of 300mn-400mn kWh from the Oberill-Lunersee power station group. EnBW is already cooperating with Vorarlberger Illwerke. Verbund is also giving up its electricity purchase rights to the Walgau power station of Illwerke. The rights will be passed on to VKW until 2030.

Vorarlberger Kraftwerke AG, Vorarlberger Illwerke AG

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