Babler announces crisis mechanism against high energy prices

"We need a crisis mechanism that protects Austria from high energy prices," said Vice Chancellor and SPÖ leader Andreas Babler on Tuesday. Details are currently being negotiated, according to a spokesperson when asked.

Babler Will Not Accept Excess Profits from Energy Companies at the Expense of the Population

"We will not accept excess profits at the expense of the population," announced Babler. Mistakes of the past must not be repeated, he referred to the explosion of gas prices around Russia's invasion of Ukraine. Because energy companies gained so-called excess profits or windfall profits in the billions. Like other countries at the time, Austria must now intervene in the prices. The lack of intervention in Austria has sustainably led to competitive disadvantages for the Austrian economy, and households also had to pay more. Babler warned fundamentally of a danger to economic growth and social balance due to high energy costs. It is now about a "law that is in the interest of customers, the state, and the Austrian economy." A Babler spokesperson remained vague about the timeline but relied on rapid progress.

Chancellor Stocker Also Wants to Intervene in Price Shocks

From Chancellor and ÖVP leader Stocker, it was further announced: "Energy prices are one of the biggest drivers of inflation. Austria needs affordable and competitive prices. If there should be strongly rising prices or even price shocks due to the current global political threat situation, we will intervene." The lack of intervention in Austria recently has sustainably led to competitive disadvantages for the Austrian economy, and households also had to pay more, said Babler. It is now about a "law that is in the interest of customers, the state, and the Austrian economy." Reference was also made to the government program, which speaks of a "commitment at the European level to revise the European pricing mechanism (merit-order) with the aim of establishing stable pricing." It also states: "Energy companies also adequately and appropriately take into account the public interest in affordable energy in accordance with the Stock Corporation Act."

Energy Prices: Already Announced Measures Have Priority for NEOS

However, it turned out to be a classic political "but" that the NEOS, the smallest governing party, denied on Tuesday afternoon upon APA request that there are already talks about the amendment to the Energy Industry Act and the accompanying announcements from ÖVP and SPÖ. For the NEOS, the upcoming and long-announced measures such as the Renewable Heat Act and other announced renewable laws have priority, it was said. According to announcements, these should be finalized before the summer.

IV President Refers to High Energy Prices

The prices for electricity and gas are currently - without the fluctuations of the Israel-Iran war - still twice as high as before the coronavirus crisis, reminded the President of the Federation of Austrian Industries Georg Knill at the Economic Journalists' Club in Vienna on Tuesday. Thus, one pays 40 euros for a megawatt of gas while it was 20 euros before Covid. The so-called electricity bonus for the energy-intensive industry for this year and next year is an "important recognition," but not a bonus - rather a partial compensation for "double-paid CO2 prices." 14 EU countries have already fixed such compensation until 2030. The electricity bonus concerns about 70 plants from around 50 companies in the cement, aluminum, steel, glass, and paper sectors.

(APA/Red)

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