VERBUND purchases 49 % of newly established Energie Klagenfurt GmbH

Negotiations regarding the involvement of VERBUND in Energie Klagenfurt GmbH, which is to consolidate all of the energy activities (electricity, gas, heat) of Stadtwerke Klagenfurt, have been brought to a successful conclusion. The contracts were signed in Vienna by the Managing Boards of both companies on Saturday, 3 December, 2005. Accordingly, VERBUND acquires 49 % of the said company, which is currently in the process of being established. The sale was approved by the Managing Board of Stadtwerke Klagenfurt in the meeting of 5 December 2005. Approval of the contracts by the Klagenfurt City Government (Stadtsenat) and the municipal council is pending, as is approval by the VERBUND Managing Board and permission by the anti-trust authorities.

VERBUND’s involvement in the new company, which will consolidate all of the energy-related activities of Stadtwerke Klagenfurt, offer clear advantages to everyone involved - customers will benefit from additional security of supply in the areas of electricity, gas, and heath. The Stadtwerke Klagenfurt will receive a strong partner with whom to implement a new power plant in form of a combined gas power plant. This power plant, situated on the town edge of Klagenfurt, with a planned capacity of 400 Megawatt and an investment sum of approx. 250 Million Euro, will serve to further reinforce the power grid in Southern Austria. Moreover, it will help mitigate the severe fine dust problem in Klagenfurt, since the district heating power plant, now located close to the centre, can be taken out of commission. Construction is to commence immediately upon receiving all necessary approval. The new combined gas power plant will go into operation after a planned construction phase of approximately 30 months.

In addition to the opportunity of installing a new power plant, VERBUND perceives of this step as the logical continuation in the process of getting involved in the end-customer business. The customers, approximately 80,000 in number, will remain customers of the new joint company; they will, however, benefit directly from the new, strong partnership of VERBUND.