Stadtwerke Schwäbisch Gmünd in chaos: managing director dismissed!

Stadtwerke Schwäbisch Gmünd in chaos: managing director dismissed!

Something is brewing in Schwäbisch Gmünd: the municipal utilities are struggling with enormous difficulties, and this is now having its first personnel consequences. The managing director Peter Ernst was fired, which heated up tempers both in the city administration and among the citizens. Mayor Richard Arnold (CDU) made it clear that the problems with billing could no longer be ignored and called for more transparency and honesty in corporate management. This is also proven by the report from SWR.

There are currently an estimated 8,000 missing statements from last year, and this is said to be due, among other things, to a software change. The effects are noticeable: in the last five years, the municipal utilities have lost around a fifth of their customers. The situation is so precarious that the company reports a loss of over 30 million euros because network fees to other energy suppliers were not invoiced.

Dark clouds over the municipal utilities

The situation is being described as “chaos” and “financial disaster” by local media, and customers’ unease is evident. Hundreds suffer from late or incorrect billing, and social networks are full of critical voices who insult the municipal utilities as a “juice shop” and advise switching providers. Given recent developments, the local council may soon take action.

The municipal utilities emphasize on their website how important they are for the quality of life in Schwäbisch Gmünd, but the reality is different. Many citizens have lost patience, and the wave of criticism continues not only on social media, but also in the political arena. The Administrative, Economic and Financial Committee will discuss the personal details of the now former managing director in a non-public meeting. In the meantime, the city has bridged the financial bottlenecks with a cash pool.

New wind at the top

Celestino Piazza, who also heads the municipal housing association, was introduced as an interim successor. Whether and how he can turn things around remains to be seen. The workforce is feeling the pressure: despite the uncertainty, the municipal utility's 170 jobs are secured. But given recent events, it is questionable whether citizens' trust in the municipal utilities can be restored. Richard Arnold warned: The municipal utilities must deliver now, otherwise there could be even harsher consequences.

The coming weeks will be crucial. Whether the Schwäbisch Gmünd public utility company comes out of the crisis depends not only on the internal restructuring, but also on how quickly they can regain the trust of the citizens. Either way, the public discussion will probably continue for a long time, either way daily news describes.