Wien Energie has not yet needed the loan of 2 billion euros from the federal government. However, the frameworks previously granted by the city itself remain in use. A total of 1.4 billion euros was allocated here.
Wien Energie’s acute financial needs became public a week and a half ago after the supplier sued the federal government, warning of an impending supply problem. Due to the price development of electricity and gas, the need for deposits for the settlement of transactions on the energy exchanges had increased enormously in the short term. The result was a liquidity bottleneck that neither the company nor the city could handle alone.
Credit limit not yet required
The situation has now eased somewhat. The federal credit line has not yet been needed, as a spokeswoman for Economics and Finance Councilor Peter Hanke emphasized on Wednesday. Formally, this is a loan from the city with the public utilities, with the money being made available to the state of Vienna through the Austrian Federal Finance Agency (OeBFA).
In return, the federal government received a number of rights. For example, the city was obliged to report to the federal government about ensuring the energy supply through Wien Energie. By September 15, Vienna must explain to the federal government the reasons for the “tense liquidity situation”. The contract runs until April 2023. During this period, a representative of the federal government will also be appointed to the supervisory board of Wien Energie.
Energy expert from abroad
Who that will be was decided on Wednesday: The federal government nominated Joachim Rumstadt, as announced by the Ministry of Finance. Until 2021, he was director of the German electricity producer Steag. “We deliberately chose to hire a proven energy expert from abroad to bring neutral and experienced expertise to the Supervisory Board of Wien Energie in the current situation. Thanks to his many years of professional activity, Joachim Rumstadt is familiar with the idiosyncrasies of the energy market and is far enough away from the Austrian market to exclude potential conflicts of interest from the outset,” stressed Finance Minister Magnus Brunner (ÖVP.
Hanke was also pleased: “I am pleased that Joachim Rumstadt has been appointed as a proven energy expert and I welcome the fulfillment of an important point of the contract between the federal government and the state of Vienna. At the same time, I renew my call for consistent going on the common path to stabilize the Austrian energy industry.”
If the federal government framework is required, there are clear rules on how to act. If deposits return after the close of stock exchange transactions, they should be repaid immediately. Should this not be possible for Wien Energie for whatever reason, Vienna should be held accountable for this.
„Vienna protective shield“
To date, Wien Energie has received 1.4 billion euros from the city itself for the margin payments on the stock exchange. In the town hall, this is called the “Vienna Protection Shield” and can be used on a rolling basis until November 30, 2023, according to Hanke’s office.
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.
