Economic Committee unanimously supports coalition proposal
Vienna (PK) – A legislative initiative by the ÖVP and the Greens aims to promote competition and prevent price abuse among energy suppliers in situations of market dominance. The corresponding “Federal Law to Mitigate the Consequences of Crises and to Improve Market Conditions in the Case of Market-Dominating Energy Suppliers” passed the Economic Affairs Committee with unanimity from the five parliamentary parties.
Two motions from the FPÖ and NEOS, both of which advocate an extension of the electricity price compensation for energy-intensive companies, were partially postponed again. A motion from the SPÖ, which calls for immediate measures against excessive energy prices, was also postponed.
Improving market conditions in the case of market-dominant energy suppliers
Specifically, according to the coalition proposal (4073/A), suppliers of electricity, district heating and pipeline-based natural gas should be prohibited from demanding purchase or sales prices or other terms and conditions that are less favorable than those of other utility companies or companies in comparable markets. The provision focuses on a market situation in which energy suppliers, alone or together with others, have a dominant position and which could therefore be abused. However, energy suppliers should have the opportunity to prove that a deviation is objectively justified. The provision is to be limited to December 31, 2027.
According to the explanations, the Energy Task Force that was set up came to the conclusion in 2023 that competition on the domestic energy market was characterized by a high level of concentration and had virtually come to a standstill in the crisis year of 2022. The new provision therefore aims to prohibit purchase or sales prices or other business conditions that would most likely not arise in the event of effective competition. According to the explanations, the initiative is based on a corresponding provision in the German Act against Restraints of Competition.
If there is a suspicion that companies with a dominant market position can also offer cheaper prices, they will in future have to provide proof of their prices, said Christoph Stark (ÖVP). This is to ensure that people are not burdened by such price formation. Alois Schroll (SPÖ) criticized the fact that the matter was once again a “quick shot” without any assessment and saw an admission by the federal government that it had failed to combat inflation. But even if he considers the current law to be “toothless”, he will still vote in favor of it today. Karin Doppelbauer (NEOS) believes that the measure with the reversal of the burden of proof is a good step in the right direction. Regarding the limitation until 2027, she announced an amendment to overturn it. Environment and Energy Minister Leonore Gewessler said that the limitation until 2027 was based on the corresponding German law. In principle, she considers a time limit to be sensible in this area, especially since an extension by the legislature is already open.
SPÖ calls for immediate measures against excessive energy prices
The SPÖ is calling for immediate measures against excessive energy prices and against excess profits by energy companies in a motion for a resolution (3976/A(E)). This requires decisive regulation of the energy market so that energy companies do not make excess profits, but rather energy prices are based on production costs. In addition, a temporary, targeted excess profit tax must be introduced for all those companies that have enriched themselves at the expense of the people of Austria due to the current inflation. However, the Austrian federal government has so far refused to reduce prices through market interventions and is sticking to its “failed policy of one-off payments and doing nothing”, according to the criticism. The profit skimming “celebrated” by the governing parties ÖVP and Greens amounted to only €95 million, while VERBUND AG, for example, presented a record profit of €2.3 billion for 2023, according to the SPÖ. Determined regulation is needed here, demanded Alois Schroll (SPÖ). The motion was postponed with the votes of the ÖVP and the Greens. The coalition parties referred, among other things, to the previous agenda item on price abuse by energy companies.
NEOS and FPÖ for extension of the Electricity Price Cost Compensation Act
Two motions by the FPÖ and NEOS for an extension of the Electricity Price Cost Compensation Act were also postponed. The NEOS are concerned with cushioning the still high energy costs and thus strengthening the competitiveness of the energy-intensive Austrian industry. They are in favor of making use of the possibility of granting energy-intensive companies financial support in the sense of the Electricity Price Cost Compensation Act (SAG) until 2030 (3582/A(E)). The current limitation of the Austrian Electricity Price Cost Compensation Act to 2022 would expose Austrian industrial companies to systematic disadvantages in international and European competition, according to the NEOS. An extension of the SAG would also not have to resort to additional financial resources from the budget, but could again be covered by revenue from the EU emissions trading system, which would come from the industry itself.
The FPÖ also sees the limitation to 2022 as putting Austrian industrial companies at a disadvantage in international and European competition, especially since other European Member States have decided to extend compensation beyond 2023 (4044/A(E)).
Industry needs planning security and prospects, said Axel Kassegger (FPÖ). Karin Doppelbauer referred to “half of Europe” that had decided on this regulation for a longer period of time. Alois Schroll (SPÖ) spoke out in favor of the proposals, especially since he sees jobs at risk otherwise and fears that companies will move away.
Maria Theresia Niss (ÖVP) also spoke out in favor of an extension, but there is still no agreement with the coalition partner. Lukas Hammer (Greens) pointed to numerous measures that have already been taken to support households and businesses, and more are being negotiated.
Environment and Energy Minister Leonore Gewessler said that the original draft of the Electricity Price Cost Compensation Act had already provided for two years, which had been a topic of discussion within the coalition several times. She now acknowledged that there was a broad majority in favor of an extension, beyond the applicants. (Continuation of Economic Committee) mbu
Inquiries & Contact:
Press service of the Parliamentary Directorate
Parliamentary correspondence
Tel. +43 1 40110/2272
press service@parlament.gv.at
www.facebook.com/OeParl
www.twitter.com/oeparl
#Energy #sector #Price #abuse #prevented #future