What Experts Say Could Help Against High Electricity Prices

Investment incentives, a withdrawal of politics, and the disentanglement of mutual corporate participations - these are some of the measures that could contribute to reducing high electricity prices in Austria, as stated in an expert panel discussion at the invitation of the NEOS parliamentary club on Thursday evening. The former CEO of the Verbundgesellschaft, Wolfgang Anzengruber, calls for more courage and determination.

Experts Call for More Courage for Efficient Measures

"The time for homeopathic doses is over, now we need the courage for surgery," said the industry expert. High electricity prices are a significant factor in the persistently high inflation rate in Austria.

There is enough potential for savings, emphasizes the former head of the electricity and gas regulatory authority E-Control, Walter Boltz. Austria has ten too many substations. This alone results in a savings potential of around 600 million euros.

It is difficult for the public to understand that in a country like Austria, where around 90 percent of energy comes from renewable sources, the price is oriented towards the significantly higher gas price, says Anzengruber. He also criticizes what he sees as an excessively high equity ratio of 40 percent in investment measures.

"Anti-Competitive Structures" Despite Many Providers

For the former OMV CEO Gerhard Roiss, structural reasons are primarily responsible for the very high electricity prices in Austria, even in comparison with the EU. Simply consolidating the over 120 network companies could "save hundreds of millions of euros." Despite the many network providers, Austria has built anti-competitive structures, says Roiss. Austria is missing out on potential advantages through digitalization because it fails to use the installed smart meters for consumption control.

The former E-Control CEO also considers a structural cleanup necessary. However, initially, not a single cent could be saved with it. Boltz sees a main cause of the high electricity costs in the fact that Germany, in the course of the energy transition, has shut down more coal and nuclear power plants than have been put into operation with other energy forms. A faster expansion of renewable energy and a stimulation of competition would be important.

Johannes Berger from the industry-related economic research institute Eco Austria sees a stronger interaction between price and supply and demand as essential cornerstones for a functioning electricity market. To ensure that climate goals can be achieved, stronger investment incentives are also needed.

Mutual Involvements Inhibit Competition

NEOS energy spokesperson Karin Doppelbauer insisted on a necessary disentanglement between politics and business in energy policy. It would also be essential to dissolve the numerous cross-shareholdings of energy providers among each other and to depoliticize the energy market, said the Member of the National Council. Because "if you own each other, you will not properly enter into competition." Active politicians should withdraw from energy companies to enable work based purely on economic criteria.

(APA/Red)

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