Profit increase thanks to favorable procurement and fewer reserve requirements
Stadtwerk Winterthur generated sales of CHF 311 million and a profit of CHF 26 million in the past financial year. Lower costs for energy procurement and in other business areas had a positive effect.
Stadtwerk Winterthur closed its 2024 financial year above expectations. According to its press release, the reasons for this are the lower market prices for the procurement of gas and lower expenses for the winter reserve prescribed by the federal government. This resulted in a turnover of CHF 311 million and a profit of CHF 26 million.
There were fewer burst pipes in the water network and the operation of the waste recycling plant was largely uninterrupted. In district heating, significantly less oil and gas had to be purchased to cover consumption peaks. In addition, the number of customers connecting to the heating networks increased. As a result of the financing of the municipal pension fund approved by the Winterthur electorate, previous provisions were released.
With regard to the challenges in the present and future, the municipal utility cites rising costs for operating resources and external services in all business areas and the increasing shortage of qualified staff. At the same time, the increasing self-production of solar power by private individuals and companies is reportedly a challenge, as this means that they are purchasing less electricity from Stadtwerk Winterthur. In addition, the quantities purchased are more difficult to predict, as they are more dependent on the weather.
The energy supplier will incur high costs due to the renewal of the waste incineration plant as well as the conversion and expansion projects for the wastewater treatment plant and the heating networks. This will require a large framework credit, which is expected to be voted on at the end of next year. In addition, complex preparations for the legal and financial consolidation of the heating networks are underway. Stadtwerk Winterthur is also increasingly concerned with the costs of environmental regulations and measures to increase energy efficiency.