Bewag

The Berlin power authority, taken over by Vattenfall and now merged with HEW and VEAG as Vattenfall Europe. (See under Vattenfall Europe.)

For a period after mid-1997, Bewag was dominated by Bayernwerk (Viag), Preaussenelektra (Veba) and Southern Company (USA), who each owned 25% of the shares (but Bayernwerk raised its equity interest to 26% in 1997). This was the result of the Berlin city council deciding to sell its 50% holding, in order to raise money for the council's financial problems.

Bewag increased its profits to DM156.8m in 1994/95 from DM134.4m in the previous year. Turnover declined 1.8% to DM4.207bn, with falls in both electricity and heating sales. The company cut materials costs by 15%, mainly by using cheap imported coal for 23.6% of total fuel input against 11.8% a year earlier. The workforce was cut by 607 to 10,215, generating savings of 6.6%.

Bewag pays a concession levy to the council, which has risen as speciified in the contract from DM45m in 1993/94 to DM87m in 1994/95 to DM160m in 1995/96. Electricity prices will be cut by 5% in 1996 as well, but the company still expects further profits because of further cost-cutting.

Bewag serves about 2.1 million customers in metropolitan Berlin, directly supplying electricity without the intermediation of resellers.

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