Government Presents New Proposal for Electricity Industry Act
During the review, there was much criticism of the feed-in tariffs provided for in the Electricity Industry Act (ElWG). In the future, not only consumers but also electricity producers should be involved in the costs of grid expansion. This would have also affected numerous private households with a photovoltaic system on the roof.
Electricity Industry Act: Small PV Systems Exempt from Feed-in Tariff
The planned feed-in tariffs caused much criticism during the review. In the future, not only consumers but also electricity producers should be involved in the costs of grid expansion. Many private households with a PV system on the roof would have been affected by this. In the new draft law, small PV systems with a capacity of less than 7 kilowatts should be exempt. For larger systems, the feed-in tariff should only be calculated for the electricity fed in that exceeds 7 kW, explained Minister of Economic Affairs Wolfgang Hattmannsdorfer (ÖVP) on Tuesday after the Council of Ministers. In Austria, there are around 535,000 PV systems. Of these, around 185,000 have a capacity of a maximum of 7 kW.
Also included in the text is the planned peak capping for solar and wind power plants. These were mainly criticized by the wind industry. Specifically, it should be possible for the grid operator to reduce the fed-in power of these plants in the event of an impending grid overload. "We are creating the possibility for voluntary self-capping if you optimize yourself out with storage technology," said the minister. For solar systems, the capping can amount to up to 40 percent of the capacity, for wind power plants up to 15 percent. Over a year, however, the capped capacity should not exceed two percent of the total capacity.
Electricity Industry Act Now Called "Affordable Electricity Act"
Furthermore, with the law - the government has now named the draft "Affordable Electricity Act" - a social tariff of six cents per kilowatt-hour (kWh) for low-income households is to be introduced - up to a consumption of 2,900 kWh. To further reduce grid costs, existing reserves should also be dissolved. "We will return all reserves parked in different accounts - almost half a billion euros - to reducing grid costs," said Hattmannsdorfer. It was not further explained which accounts are specifically involved. Furthermore, electricity providers would be obliged to pass on price reductions on the wholesale markets to customers within six months.
Two-Thirds Majority Required for Electricity Industry Act
It is not yet certain that the Electricity Market Act will come into force on January 1st. A two-thirds majority is needed in the National Council - that is, the votes of either the FPÖ or the Greens. Minister of Economic Affairs Hattmannsdorfer expects the approval of both opposition parties. He considers the proposed law to be "very pragmatic" and sees no reason not to agree. The review period for the ElWG had already ended in mid-August. Over 570 comments were submitted on the original proposal.
(APA/Red)
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