Mecklenburg-Western Pomerania: payment problems at public utilities feared

How long can the municipal energy suppliers in MV keep up with the high purchase prices for gas, which they can only later pass on to customers? The state government is now creating the conditions for them to be helped.

Mecklenburg-Western Pomerania: payment problems at public utilities feared

How long can the municipal energy suppliers in MV keep up with the high purchase prices for gas, which they can only later pass on to customers? The state government is now creating the conditions for them to be helped.

Schwerin (dpa/mv) - Due to the energy crisis, fears are growing in Mecklenburg-Western Pomerania's state government that municipal energy suppliers could have payment difficulties. On Tuesday, the cabinet therefore passed a draft law that would allow municipalities to grant their suppliers guarantees and loans without collateral. The Ministry of the Interior should be able to issue an ordinance if the worst comes to the worst.

The regulation to make it easier to grant guarantees and loans for municipal energy suppliers such as public utilities should initially apply for 2023 and 2024. Municipalities should also be able to take out loans more easily for this, as well as for paying their own energy bills.

The government is stepping up the pace: the draft law is to be presented to the state parliament on Friday. Due to the market development, there was a risk of liquidity bottlenecks at municipal utilities, "which may have to be addressed in the short term," says the explanation of the draft law, which is available to the German Press Agency.