AVAG - Robust financial year 2023

Aare Versorgungs AG (AVAG) achieved a pleasing result in an eventful environment in the 2023 financial year. Both sales of CHF 91.8 million and profit of CHF 9.7 million were up on the previous year.

At the 24th Annual General Meeting on 22 May 2024, Aare Versorgungs AG (AVAG) presented its shareholders with a good financial year 2023. With sales of CHF 91.8 million (previous year: CHF 82.4 million), a profit of CHF 9.7 million (CHF 8.4 million) was achieved. The result reflects AVAG's stable business model. AVAG is a pure asset company. It does not employ any staff of its own and purchases all necessary services from Primeo Energie and third parties. These include the provision of grid-related services for municipalities and third parties, the distribution and transmission of electricity via its own supply grid (grid utilisation) and the sale of electricity to customers with a basic supply. The latter currently receive electricity at prices that are in the mid-range compared to the rest of Switzerland. This is due to the fact that market prices have fallen, although they are no longer at the low level they were before 2022. On the other hand, Primeo Energie has used around CHF 6 million in subsidies in the AVAG area to dampen the price increase in line with its cooperative mandate. To this end, the group is foregoing profits. 

Investments for a reliable distribution grid
AVAG is doing everything in its power to ensure that appropriate investments are made in maintaining and expanding the distribution grid. The aim is to ensure the high quality of the grids and a reliable supply of electricity to customers in the long term. The investment volume for the distribution grid in 2023 was CHF 6.6 (5.4) million. Stable and well-developed distribution grids are an important prerequisite, also for the implementation of the Energy Strategy 2050. Accordingly, a large-scale lithium iron phosphate storage facility is planned at AVAG's Kappel substation, which will take over peak loads from photovoltaics, perform peak shaving to optimise grid usage and thus provide system services for secure grid operation. 

Customers support the energy transition
AVAG has been able to support many customers in producing clean electricity themselves or switching to renewable heat. In AVAG's traditional grid area, a total of 1,119 PV systems with an installed capacity of over 27 megawatts were in operation at the end of 2023. The increase in photovoltaic systems is impressive: 248 newly installed photovoltaic systems were connected to the grid in the reporting year. The trend of recent years is thus continuing, which is in line with the federal government's energy strategy and fully in line with AVAG's objectives.

Turnover increased, profit slightly lower
The 14 shareholders present, representing a total of 49,918 of the 50,000 shares, unanimously approved the management report and the 2023 annual financial statements. The members of the Board of Directors were unanimously discharged. Ernst & Young AG was also unanimously confirmed as auditors for the 2024 financial year. The Annual General Meeting unanimously approved the proposal of the Board of Directors and resolved to pay a dividend of CHF 200 per share, the same as in the previous year. The dividend reflects the solid structure of AVAG. 

Elections 
The current members of the Board of Directors Lukas Küng, Dominik Baier, Roger Ballmer, Stephan Naef, Daniel Vögeli and Mato Matosevic were re-elected for a further three-year term of office until 2027. Stefan Berchtold and Iwan Stierli were unanimously elected as new members of the Board of Directors. They succeed Dr Dieter Leu and Beat Huber, who did not stand for re-election. Dieter Leu has been with AVAG since its inception in 2006, when the then ATEL allowed the municipalities to participate in the electricity grid, and has played an active role in shaping the entire development of AVAG. Beat Huber has been Vice Chairman of the Board of Directors since Primeo Energie acquired a stake in AVAG in 2016. The Annual General Meeting thanked both of them for their great commitment to the local supply of electricity to AVAG customers and shareholders and Primeo Energie cooperative members respectively.

Media contact: Joachim Krebs, Head of Corporate Communications, +41 61 415 43 85, j.krebs@primeo-energie.ch