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The long-term stabilisation trend of German utilities' financial situation continues, writes consultancy PricewaterhouseCoopers (PwC) in which looks at financial statements up until the end of 2018. While the EBITDA margin – earnings before interest, tax, depreciation and amortisation as a percentage of the revenue – declined slightly in 2018 compared to the previous three years and financial debts increased, PwC still sees the stabilisation trend unbroken.

German municipal utilities and large energy companies have struggled to transform as the energy transition opens the market to new players and fundamentally changes the energy system. The latest struggle of local utilities  surrounded compensation payments under the country’s plan to exit coal-fired power generation. Many companies operate hard coal plants, which have to take part in auctions to receive compensation, unlike lignite plant operators which receive fixed amounts decided in political negotiations.