Go-ahead for participation in Energie Klagenfurt GmbH

12/19/2005Wien

Today the VERBUND Supervisory Board gave the go-ahead for the purchase of 49 percent of Energie Klagenfurt GmbH, which will consolidate all of the energy-related activities (electricity, gas, heat) of the power company Stadtwerke Klagenfurt. Thus, one other delaying condition required for the transaction has been met. Permission from the anti-trust authorities will be applied for before the end of December 2005.

Today the VERBUND Supervisory Board gave the go-ahead for the purchase of 49 percent of Energie Klagenfurt Gmbh, which will consolidate all of the energy-related activities (power, gas, heat) of the power company Stadtwerke Klagenfurt. Thus, one other delaying condition required for the transaction has been accomplished; obtaining permission of the anti-trust authorities is aimed at for the beginning of next year.

VERBUND’s participation in the city’s supplier of energy will prove highly beneficial to all concerned. Customers of the Stadtwerke will benefit from a further guaranteed security of supply.

The Stadtwerke Klagenfurt will thus acquire a strong partner with whom to implement a new combined power plant with a planned capacity of 400 Megawatt at an investment sum of approx. 250 Million Euro. This power plant is of major importance for the further reinforcement of the power grid in Southern Austria and the local heat supply of the city of Klagenfurt. Moreover, at the same time, it will significantly mitigate the severe fine dust problem troubling the Carinthian capital, since, once completed, the oil-fuelled district heating plant located close to the town centre can be taken out of commission.

VERBUND perceives of this step of participating in Energie Klagenfurt GmbH with approx. 80,000 customers as the logical continuation of its involvement in the end-customer business.