Hit hard by spiraling energy prices, four big Catholic and
Protestant churches in the southwestern German state of
Baden-Wuerttemberg have joined forces to create
the Society for the Supply of Energy to Church and Social
Institutions (KSE) last month.
The company aims to provide gas some 10 percent below market prices
in Germany by January 2009.
It's hoped the venture will help the churches get a grip on
runaway energy prices.
In 2003, the diocese of Freiburg spent 15 million euros ($22
million) on energy consumption.
Three years later, that
figure had climbed by more than 45 percent to some 22
million -- taking up almost 20 percent of the church's budget.
"The costs are a huge burden. I don't think that we would
have taken any action otherwise," KSE supervisory board
chairman Johannes Baumgartner said. "It's our aim to
offer gas at a reasonable price. If we can supply gas at a lower
rate by cutting out the middle man, then we have done a good job.
We just want to be cheaper."
Offering energy at more Christian prices
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Social institutions, such as hospitals, will also be able to profit
from the project.
Baumgartner said he believed the KSE stood a good chance
of undercutting other energy companies.
Since the fall of 2006, Germany's gas market has been liberalized
and is now open to household customers. Just like in the
electricity market, gas consumers are now free to choose their
provider. As a large consumer, KSE hopes to buy its energy supply
directly where other state utilities get theirs from.
Though gas prices are index-linked to oil prices, Baumgartner said
KSE could offer more reasonable gas prices than other energy
companies.
"On the one hand, we have written into our statutes that we are a
non-profit making organization. On the other, we have a very lean
administrative structure," he said. "We have outsourced the
purchase of gas and the billing process, and already agreed fixed
costs there. And we are also trying to keep down organizational and
operational costs to as modest a level as
possible."
The KSE has employed an energy acquisition agent who also works for
big energy companies to buy gas directly at the stock exchange
or by calling for tenders -- also thereby cutting costs.
The project is the first of its kind in Germany and has met
with interest in other dioceses, according to Baumgartner.
"At first we want to concentrate on supplying gas to our parishes
and to charitable and social organizations here in
Baden-Wuerttemberg. If that works out well, we'll be glad to
welcome others from outside who increase our purchasing capacity,"
he said.
Project could cut health care costs
Patrick Hueter who works at the day clinic in the town of
Spaichingen said the savings could be considerable. His clinic
is part of the Vinzenz von Paul Hospital which runs a host of
clinics and organizations across Baden-Wuerttemberg.
"If you consider that everyone is always grumbling about the
costs rising, particularly in the hospital sector," he said. "If
the church can manage to supply energy at a lower cost, then it
will also be possible to keep down health insurance contributions."
The churches in Baden-Wuerttemberg aren't planning to stop at
lowering gas prices. Their cheap electricity contracts expire at
the end of 2010.
Starting 2011, Baumgartner said the churches could also
be set to make their debut in the electricity market.
(Deutsche Welle)
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