Zug increases stake in energy supplier

For many years now, the town of Zug has been a major shareholder in the Wasserwerke Zug AG (WWZ) utlity company, and on Monday, the general municipal council voted unanimously in favour of a further increase. The town of Zug will taken a further four percent stake of 2,000 shares – worth some CHF 24.1 million – and thus become the utility's biggest shareholder.

 

"This is an important step towards the further securing of the municipal supply," stated SP municipal councillor Susanne Giger, while head of the local CVP party Hugo Halter sees the increased stake as "the fulfilling of one of the town's main tasks, namely the basic supply of water and electricity to our our population in a way which acknowledges our responsibilites." SVP councillor Philip C. Brunner was also pleased about the fact that the canton is also becoming a WWZ shareholder, making this "a genuinely Zug-based solution".

 

Cornelia Stocker (photo) of the FDP however pointed out that "the shares weren't purchased at a bargain price", and that the town council could end up faced with a conflict of interest. "A stake of this magnitude should be linked to the development of the share price," she continued. "In the future, the town council will have to blank out the idea of shareholder value for WWZ." Mayor Dolfi Müller however saw this as less of an issue, pointing out that the town's stake was "in the interest of the customer", and that reasonable water and electricity prices would take priority over shareholder dividends.