Transparency and neutrality in new concession agreements

What exactly is it about?

Being able to access electricity, gas, water and heat every day sounds like a matter of course. But to ensure that the grids actually reach every household, it is not just the infrastructure that needs to be maintained, renewed and expanded. A comprehensive set of legal regulations must also be observed. This is because the supply is regulated by so-called concession or usage contracts with an energy supply company. These contracts grant

• rights of use for the municipality's public transport routes for the installation and
• operation of the necessary supply networks.

What is the current situation in Erlangen?

The existing concession agreement with Erlanger Stadtwerke covers electricity, gas, water and heating. It ends on December 31, 2026 and must be awarded again accordingly. Due to the changed legal situation, separate contracts are now required for the individual areas. Different legal framework conditions apply to the awarding of these contracts. In particular, a special concession procedure is prescribed by law for the electricity and gas sectors, in which the municipality must be neutral towards all bidders.

In order to prepare for the conclusion of the new contracts and strictly adhere to the neutrality requirement, the city council has now decided to form a so-called concessions committee. The background to this step: Erlanger Stadtwerke is expected to be the bidder in both procedures. As the company is wholly owned by the City of Erlangen, seven members of the City Council currently also sit on the Supervisory Board of Erlanger Stadtwerke. The Chairman of the Supervisory Board is Lord Mayor Florian Janik. These persons are not allowed to decide on the concession agreements.

What is the role of the Concessions Committee?

• It is entrusted with the key decisions in the concession procedures
• It ensures a clear separation between the city and Erlangen Stadtwerke.

Members of the Concessions Committee may not be particularly close to the municipal utilities. In particular, they may not sit on their supervisory board. The committee is not publicly informed about

• the procedural documents
• selection criteria
• Selection decision

deliberate and decide. The meeting documents will only be made available to the committee members and will be stored securely. The committee has eleven members including the chair. It is appointed by the City Council.