Letter to the Ministry – Wien Energie needs 6 billion euros – only from the federal government

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In view of rising wholesale energy prices, Wien Energie needs financial support, namely six billion euros in loans or guarantees, it was announced Monday afternoon. According to information from the “Krone”, a corresponding letter from alderman Peter Hanke (SPÖ) has arrived at the Ministry of Finance. Insiders expect that the aid needed could increase further and that other supporters would also have to intervene.

Wien Energie had already contacted the federal government on Friday evening to continue to guarantee a stable general situation for the energy supply in Vienna and the whole of Austria in the long term. It involves deposits for trades that have already been made – but no losses need to be offset, it was emphasized.

Trade prices “risen”
The required deposits in the energy trade rose on Friday due to the renewed and unexpectedly exploding electricity price. The price of electricity in the retail sector has skyrocketed from 700 to about 1000 euros per megawatt hour – analogously, the advances required for transactions already executed have multiplied in the future. This situation is also known from neighboring countries, international energy suppliers in, for example, Germany are facing the same problems and are already receiving state aid.

Price pressure was strongest
However, Wien Energie and parent company Wiener Stadtwerke are solid, economically sound companies with excellent creditworthiness, Wien Energie explained in a press release on Monday. However, Wien Energie is Austria’s largest energy supplier with the most customers and the largest gas-fired power plants and is therefore the most exposed to price pressure.

“Ensure long-term delivery”
As part of a forward-looking plan, Wien Energie, its parent company Wiener Stadtwerke and the City of Vienna established the necessary credit lines for deposits, which were used exclusively to secure transactions already made on the energy exchange and thus secure the energy supply in the long term. delivery term.

These securities, as guarantees, are a common part of transactions, and the deposits are returned once the transactions are settled, it said.

“All necessary measures”
“From the political side, all necessary measures will be taken to ensure this in the future,” E-Control board members Alfons Haber and Wolfgang Urbantschitsch emphasized in a statement. According to the Energy Regulatory Authority, what specific measures are being implemented is currently the subject of analyzes and discussions with the concerned company and the City of Vienna as owner and the federal government.

Proven risk management tool
In the European energy trade, in addition to short-term trade transactions, a large part of the energy is sold on the so-called futures market. This is where transactions are concluded that will only be fulfilled in the future. Wien Energie sells electricity from the power stations up to two years in advance and buys electricity and gas on the stock exchange in the long term, so that it can hedge against future fluctuations in electricity prices. This is a proven risk management tool in the energy sector.

Source: Krone

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