Nobody knows how many billions of Wien Energy will eventually need. One thing is certain: the group ended up in the historic financial disaster almost out of control. The mayor of Vienna has helped the company several times with an emergency decree, and now the federal government has to intervene with at least six billion euros. In the end, the Vienna themselves pay for it through taxes – in addition to energy prices, which are already three times higher in September.
Sunday evening – crisis meeting in the chancery. As the “Krone” reported, Wien Energie ran into trouble and is believed to be afloat with taxpayers’ money. Finance Minister Magnus Brunner (ÖVP) took the floor that same evening, but left Wien Energie and the city of Vienna as owners for the time being. Behind closed doors it is said that the absence of the SPÖ leaders at the crisis summit caused resentment.
No alternative available
But could the federal government drop Wien Energie at all? Local energy experts doubt that. In reality, Wien Energie, with about two million customers, is simply “too big to fail”. In other words, no other provider can guarantee an equivalent supply of electricity, district heating and gas – at least not alone.
In the case of district heating, for example, there is not even an alternative. So Whose Energy Break Up? That would be an option, but an incredible tour de force. In the case of district heating, a rescue company should be established quickly. And the assignment of gas and electricity customers to other providers? According to the law, this can even be done by drawing lots…
It’s about two billion euros – and that a day
On Monday afternoon, the Vienna City Councilor for Finance Peter Hanke (SPÖ) also spoke out in favor of the case. He locates an “unclean corridor of the political competitor”. This means, very clearly: the ÖVP. About the absence of the political leadership at the summit, Hanke tells the “Krone”: “We were invited for an expert discussion on technical issues. These experts were also represented from Vienna.”
Until now, Wien Energie has been able to provide the collateral itself, but now it is about ‘two billion euros a day’, says Hanke. At the European level, he calls for an end to the merit order, i.e. the regulation that drives up the price of electricity, and for a nationwide solution to aid: “A protective shield worth tens of billions is needed for all of Austria. Other companies will follow Wien Energie.”
The fact is: for the time being, the population is paying double for Wien Energie – due to the alarmingly rising bills and the various financial injections. Even if politicians reaffirm: “These are not lost sums. Once the deal is done, they will flow back.”
Waiting for comment from Mayor Ludwig
Wien Energie emphasizes that it has not led to speculation about this dilemma – although hardly any experts believe it. And one is suspiciously silent: Mayor Ludwig. By the hour, more questions arise about this multi-billion dollar hole. Because in July 700 million euros were secretly transferred from the city of Vienna. Monday it was the same amount again. Diving isn’t going to work.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
