Osterholzer municipal utilities overcome the energy crisis – investments are growing!

Osterholzer municipal utilities overcome the energy crisis – investments are growing!

Osterholzer Stadtwerke (OSW) achieved a solid result in 2024. Managing director Christian Meyer-Hammerström explained that the worst consequences of the energy crisis appear to have been overcome. 162 employees ensure that the supply remains reliable even in these turbulent times. The emphasis is on team performance and a strong equity ratio, which is important in these times. Meyer-Hammerström himself was able to extend his contract until 2035, which speaks for continuity at the top of the company. But not everything is rosy: around 25% of the workforce will retire due to age in the next ten years, which will require timely reinforcements. Weser courier reports that the municipal utilities continue to emphasize reliability for customers and municipalities.

A major focus is on investments in fixed assets, which at 11 million euros far exceed depreciation and thus strengthen the substance of the company. The focus of these investments is on the areas of IT, digitalization and the modernization of the electricity and gas networks. The municipal utilities are faced with the challenge of decarbonization, which will require more investment in the future - a fact that must, however, remain affordable. In addition, the industry's investment needs are expected to be more than twice as high by 2030.

Investment in the future

The OSW is already planning a specific project: a local heating network in Hambergen will offer a sustainable solution for 30 residential buildings. The energy sector is changing, and the citizen information evenings on municipal heat planning on August 27, 2024 are part of these efforts to include the population in the transition.

In view of the economic situation, the retained profit fell by 10% to 5.79 million euros, which is primarily due to the high investments and risk provisions. The distribution of investment income fell from 8.57 to 4.37 million euros. Nevertheless, the annual result enables profit retention of over one million euros. The collaboration with the shareholders, including the Osterholz-Scharmbeck swimming pools and the Ritterhude and Lilienthal businesses, remains stable and important. ZFK emphasizes that these measures create the basis for future investments and the company's performance.

Attractiveness for the next generations

The public perception of the energy transition plays an important role and could support municipal utilities like OSW in their visibility. A current municipal utility study shows that 78 percent of those surveyed view municipal utilities as attractive employers despite difficult conditions. This shows that young people are very interested in climate protection and are willing to get actively involved in the energy transition. Nevertheless, municipal utilities have to take new approaches when filling vacancies: alternative training paths and modern working methods could help to close the gaps in the workforce. EY emphasizes that holistic solutions for sustainable energy supply are becoming increasingly important.

Overall, it shows that Osterholzer Stadtwerke is on the right track, even in view of the challenges that the future brings with it. The focus on a sustainable, innovative energy supply not only meets the needs of the present, but also ensures that the OSW is well positioned for future generations.