Electricity Market Reform: Approval, Criticism, and Demands

While businesses and the regulatory authority mostly welcome the government's planned electricity market reform, there is sharp criticism from renewable energy associations and parts of the opposition - particularly regarding planned grid fees for suppliers and the so-called peak capping.

E-Control welcomes the draft as an important step towards a modern electricity system. A fair balance between consumers and energy companies is important, emphasized board members Alfons Haber and Wolfgang Urbantschitsch in a written statement. Social tariffs, smart meter regulations, and incentives for grid-friendly behavior are highlighted positively.

AK: "Overdue Law"

The Chamber of Labor (AK) speaks of an "overdue law" but calls for refinements: the unemployed must be considered in the social tariff, and consumers should be better protected against unilateral price changes. Electricity producers should contribute more to grid costs - but not those who generate electricity for their own needs.

The FPÖ sees the reform as a first step but calls for profound changes also in the Renewable Expansion Act and climate goals. Security of supply and affordability must be the focus, according to energy spokesperson Axel Kassegger.

The Greens want to "carefully examine" the draft law. For the new party leader, former minister Leonore Gewessler, the ElWG must advance the energy transition, secure investments, and guarantee social justice.

Praise and Criticism from the Electricity Industry

Oesterreichs Energie, the representative of the electricity industry, welcomes the new tariff structure and digital customer communication, but warns of additional burdens for the industry. "Energy policy is not a suitable instrument for addressing social policy challenges," warns Secretary General Barbara Schmidt.

The Chamber of Commerce (WKÖ) calls for fair financing of network costs and mandatory cost allocation based on causation. Special regulations, such as for energy communities, must be critically examined. The Federation of Austrian Industries (IV) sees a great opportunity in the ElWG for a more cost-efficient electricity system, but calls for, among other things, a stronger linkage of network charge exemptions to network utility.

Renewable Producers Warn of Misguided Incentives

The IG Windkraft warns of massive misguided incentives due to the planned peak capping for wind energy. This is "arbitrary" and endangers investments in winter electricity - the government is sending a fatal signal to domestic companies.

Photovoltaic Austria criticizes additional feed-in fees as "highly risky in terms of energy economics" and as a setback for the energy transition. The regulations are a burden package for over 500,000 PV operators.

The umbrella organization Renewable Energy Austria (EEÖ) sees the reform as a strategic misstep. Retroactive network charges, lack of planning security, and the exclusion of technical expertise would endanger trust and investments, says Managing Director Martina Prechtl-Grundnig.

Small Hydropower Austria speaks of a law that favors imports and makes domestic production more expensive. "Instead of weakening domestic production, the unspeakable G-component, the network fees for larger power plants, should finally be abolished, otherwise only electricity imports will be promoted, which consumers will ultimately pay for," criticized Small Hydropower Managing Director Paul Ablinger in a statement.

(APA/Red)

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