Despite financial fiasco – “Which affair?”: Ludwig defends Wien Energie

According to Ludwig, he would be happy if the funds transferred to the city of Vienna via the loan route were treated in the same way as the funds allocated to other federal states. Ludwig: “I am surprised that in the case of Vienna it provokes such a big political reaction.”

Wien-Energie boss and financial councilor still enjoy Ludwig’s trust
At the moment, Ludwig rules out the possibility that after the increase in electricity and gas prices in Vienna that took effect on Thursday, there will be a further rise soon. Moreover, the head of Wien Energie and the alderman for Finance enjoy his confidence.

Two loans of 700 million euros via ’emergency competence’
However, the public interest in the crisis management of the city of Vienna in the case of Wien Energie is currently very high. Many wonder why the city hadn’t approached the federal government sooner. In mid-July, Ludwig approved a loan of 700 million euros for Wien Energie, and then another 700. He did it with his “emergency power” as enshrined in the Vienna City Constitution – quietly and secretly, so to speak. He wanted to inform the city council in September. He is said to have informed his coalition partner, NEOS, in advance.

“Security of supply is and is always guaranteed”
Interesting: On Wednesday, Ludwig claimed that security of supply in Vienna had never been affected. However, the circular resolution of the Vienna City Senate for the federal government’s multi-billion dollar loan states that if Wien Energie does not have this extra money, the security of supply for customers can no longer be guaranteed. Ludwig emphasized again on 1: “The security of supply is and has always been guaranteed.” According to him, the management of Wien Energie also denies that a lack of credit from the federal government would have endangered the security of supply. According to Ludwig, the sole intention with the double loan of 700 euros was to ensure that Wien Energie could also support stock exchange trading – as part of a deposit.

Ludwig: “28,000 new contracts in July alone”
“We don’t need the funds that are available, nor the funds that are available now. And it was only important to define a framework that makes Wien Energie independent of influences seen in the energy market. It was a preventive measure that was not necessary until now.” In the interview, Ludwig also proudly pointed out that Wien Energie signed 28,000 new customer contracts in July alone. “These were violated by private providers.”

speculation accusations
But why is Wien Energie in such a bad financial position? Wien Energie is said to have bought at least eight billion euros on the European electricity price exchange EPEX – with the expectation that it will later be sold at a profit. But as the market is going crazy, no profit came. Now there are allegations of speculation. When it comes to the city of Vienna, nobody wants to know anything. It is a completely normal process, the misery is due to the recent rapid price changes in the electricity market, which no one could have foreseen. The federal government is also responsible, because it has so far failed to put in place a protective shield for energy companies based on the German model.

Other parties shoot at SPÖ Vienna
In any case, the other parties are furious and sharply criticize the SPÖ Vienna. According to the VP club president of Vienna, August Wölbitsch, the “issue of emergency jurisdiction” must be investigated. “Was it legal to grant Wien Energie a loan of 700 million euros twice?” The law provides that the committees will be informed “immediately” afterwards. You got it from the media. This is a ‘legal term’, the ÖVP wants to ask for an expert opinion. Ludwig had claimed that the information would be presented to the committee at the end of September, which Wölbitsch did not “immediately” accept. The ÖVP is now in talks with the other opposition parties about how to proceed, according to the Viennese club chairman.

NEOS boss: ‘Confidence not strengthened’
NEOS faction leader Beate Meinl-Reisinger also had little good to say on Wednesday about the coalition partner in the federal capital – the SPÖ. The Reds’ crisis management, communication and lack of transparency are “absolutely unacceptable,” she criticized. Confidence within the city coalition was “not strengthened” as a result. She also does not see that the taxpayer should pay for it.

The fact that Ludwig made use of the emergency ordinance power, which is enshrined in the city constitution, and thus apparently allocated city funds to Wien Energie without consulting the coalition partner and the city council, is now rightly discussed politically. “But even if you exercise this power, it doesn’t mean you don’t communicate,” she noted misconduct by the mayor of Vienna. She is also amazed at the exchange of information between the federal government and the city.

FPÖ media spokesman Christian Hafenecker criticized Wien Energie’s advertising spend, which amounted to almost EUR 5.2 million in less than a year and a half. “The amount of information that a city energy company, whose job is to provide the population with electricity, gas and district heating, has in the millions is more than questionable.”