E-Economy Demands Improvements to the Electricity Industry Act

Barbara Schmidt, Secretary General of the industry association Oesterreichs Energie, praised the draft law. She highlighted the new tariff structure, which includes a stronger performance component. This is intended to reduce costs by decreasing network loads due to simultaneous electricity withdrawal or feed-in. The peak capping for photovoltaics and wind is also positively evaluated, as it prevents unnecessary electricity feed-in during negative market prices. This enables the connection of additional PV systems to the grid.

Electricity Industry Act: Customer Choice a Plus for the Electricity Industry

The fact that customer choice remains in place for monthly billing was also noted as a plus by Schmidt. "Now the regulation is such in the law: Every customer who wants it can request a monthly billing. But if the customer does not get in touch, it remains as before with an annual billing." The new law would particularly benefit customers who actively participate in the energy market, said Schmidt. However, one thing is clear: "Yes, this system overhaul costs money." Therefore, it must be done wisely. "If many try to optimize themselves out of this, it will lead to the transformation being more expensive. And if done wisely, the transformation will be affordable."

Producer Component as a Weakness in the Electricity Industry Act

Oesterreichs-Energie President Strugl was tasked at the press conference on Wednesday with pointing out the weaknesses that the ElWG draft has from his perspective. One point, "which we really consider extremely problematic, is the producer component in the network tariffs." A reduction in energy prices can only be achieved with more production in the country. "If we now implement measures that further burden production, making investments less attractive instead of stimulating them, then that is highly counterproductive," said Strugl. "I don't know who came up with this. Ultimately, it will make electricity more expensive in Austria, especially in those hours when gas power plants are price-setting, i.e., in the expensive hours." This is "not thought through to the end." Austria is too dependent on energy imports and pays 10 billion euros annually for fossil energy imports.

Expansion of Storage Capacities a "No-brainer" for Verbund CEO

For Strugl, it is a "no-brainer" that storage capacities need to be expanded. Therefore, it is welcomed that in the ElWG, storage facilities are generally exempt from certain charges if they are "system-relevant." So far, storage has been generally excluded. "This has led to investment security for those who invest billions in storage." Verbund alone will invest 1.3 billion euros in hydropower over the next three years - "the majority are large pumped storage projects." For Strugl, "storage is inherently, by definition, system-relevant." Investment protection for projects already under construction is also important. The trust of investors in existing regulations "must not be destroyed by changing the regulation ex post."

The electricity industry does not see itself responsible for supporting poorer households. The draft law provides for a social tariff, i.e., a subsidized price of 6 cents per kilowatt-hour for the first 2,900 kWh. This would be around 250,000 households or half a million people in Austria, said Schmidt. The electricity industry should therefore support these households with 50 million euros per year - but such support is a matter for social policy. It is therefore important to critically question the circle of those entitled.

Electricity Industry Plus Point for Lower Taxes on Energy

The electricity industry is already heavily burdened, said Strugl, for example with the "energy crisis contribution" of 200 million euros per year. The term is misleading and comes from a time when there was an energy crisis. Now the social tariff is added. "We would like these funds to benefit electricity customers and relieve them, and not just be used to fill budget gaps." Inflation has recently been fueled again by energy taxes. "So lower the taxes on energy, that can be done very quickly and helps the location and the economy the most."

(APA/Red)

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