Automotive Supplier Insolvency Triggers 30 Percent Wastewater Fee Hike in Gerstungen

The municipality of Gerstungen in Thuringia faces a proposed 30 percent increase in wastewater fees following the shutdown of automotive supplier AE Group. The local municipal utility announced that more than half of the price hike stems directly from the loss of the company, which was previously one of the area's largest water consumers and major employers.

Under the draft plan, wastewater fees in the town of 8,850 inhabitants will rise from 2.79 euros to 3.63 euros per cubic meter starting on January 1, 2027. According to calculations by municipal utility manager Armin Hast, 48 cents of the 84-cent increase per cubic meter are directly linked to the loss of AE Group, with 43 cents caused by distributing fixed costs across lower wastewater volume and five cents caused by lost basic fees and high-pollution surcharges. For a three-person household using 120 cubic meters annually, annual wastewater costs would rise by 100.80 euros to 435.60 euros, with 57.60 euros of that increase attributed directly to the factory closure. The local council is scheduled to vote on the price adjustment on November 26.

AE Group, which manufactured aluminum die-cast parts for engines and transmissions, filed for insolvency in self-administration in August 2024 before entering regular insolvency proceedings in August 2025 and halting operations by late 2025. The shutdown resulted in the loss of approximately 550 local jobs and removed a primary revenue source for the municipality. The company accounted for roughly twelve percent of Gerstungen's total wastewater volume and consumed 46,000 cubic meters of drinking water in 2025 alone. Mayor Daniel Steffan stated that the town is also losing trade tax revenues that in previous years reached high six-figure sums.

Mayor Steffan explained to public broadcaster MDR that the municipality must redistribute the fixed operating and refinancing costs of its wastewater infrastructure across fewer remaining cubic meters. Utility manager Hast noted that infrastructure requirements will drive further fee adjustments, as the municipality faces projected investments of around 60 million euros in wastewater networks and ten million euros in drinking water systems over the next 20 years. Alexander Handschuh, a spokesman for the German Association of Towns and Municipalities, stated that municipal financial crises frequently follow corporate distress when local tax bases depend heavily on a small number of industrial companies.

Written by Andreas Hofer andreas.hofer@alpineweekly.com