Government Sends E-Economy Law for Review

"The most important point for me is a kind of electricity price reduction guarantee," said Minister of Economic Affairs Hattmannsdorfer (ÖVP) at the presentation of the "largest electricity market reform of the last 20 years." The Electricity Industry Act also plans for social tariffs, flexible network charges, and a "peak capping" in electricity feed-in.

Electricity Industry Act under Review: Social Tariff for the Needy

The aim is to reduce electricity costs, strengthen supply security, and accelerate the energy transition, said Hattmannsdorfer. Energy supply companies (EVU) will be required to pass on wholesale price reductions to their end customers within six months. The role of E-Control as market supervision will be strengthened, said the minister - the energy authority is to monitor the development of wholesale and end customer prices.

Flexible Network Charges, Dynamic Energy Prices

A second key point is the introduction of flexible network charges. "If someone takes into account when they use the network, there should also be an advantage through lower network costs," said Hattmannsdorfer. Those who already own a PV system may be annoyed because the system may not be as profitable as the original calculation suggested. In the future, a network charge will have to be paid for feeding electricity into the grid. Additionally, there will also be a "peak capping" in electricity feed-in: In the event of an impending network overload, only up to 60 percent of the capacity may be fed in - however, this should only be for a few minutes a day, as the minister emphasized. "If we calculate generously, it concerns three percent of what is fed into the grid from the surplus over the whole year."

Energy supply companies with more than 25,000 metering points will also have to offer dynamic tariffs in the future. EVUs that are majority-owned by the public sector should also set low electricity prices as a goal in their statutes. With the new ElWG, companies will also have the opportunity to form energy communities. Electricity producers and companies will be able to conclude multi-year supply contracts. The establishment of direct lines between production facilities and companies will be bureaucratically simplified. Households will be allowed to pass on electricity on a small scale - for example, within the neighborhood.

Electricity Industry Act under Review: Social Tariff for the Needy

The draft law also provides for the introduction of a nationwide uniform social tariff of 6 cents net per kilowatt-hour for an annual consumption of up to 2,900 kilowatt-hours, reported SPÖ State Secretary Michaela Schmidt. Around a quarter of a million households in Austria are expected to benefit from this - for example, minimum pensioners, those in need of care, and minimum security recipients. The costs are to be borne by the energy suppliers - however, the customers should be evenly distributed among the suppliers so that there is no incentive for the EVUs not to take on these customers. A two-thirds majority is required in the National Council for the law, so the governing parties need the votes of the FPÖ or the Greens. "We will talk to both opposition parties. Our goal is a national consensus," said the minister.

(APA/Red)

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