Economic Affairs Minister Martin Kocher (ÖVP) does not believe in a longer stop of gas supplies in Russia. This is also “an extreme burden” for Kremlin boss Vladimir Putin, so he considers such a move “unlikely,” Kocher told journalists in Vienna. After all, given the lack of pipelines, Putin can only “burn” the gas. For this winter, he is “relatively optimistic that we will not have a gas crisis,” said the minister.
Kocher also expects that energy prices “will most likely fall again” after the winter. “You just have to get through this difficult phase,” said the minister, with a view to the heating season, in which more gas is needed for electricity production than in the summer.
“We should not be fooled if there is no gas from Russian sources for a week or two,” the minister said. After all, you prepare yourself for such a scenario by filling the gas storage tanks, among other things. The agreed strategic reserve of 20 terawatt hours corresponds to one fifth of Austria’s annual consumption, which is “relatively high”.
Minister wants to “not make a profit” with reserves
Kocher was not clear when asked at what price the state would withdraw the gas from its reserves if the worst came to pass. You don’t want to make a “profit” with it, he assured. The gas is intended for supplying households and vital infrastructure. The goal is that the reserve is not needed at all.
In principle, the economist wants to rely on the steering effect of high energy prices for as long as possible. These would also regulate the use of radiant heaters in gastronomy or snow cannons in tourism, Kocher explained. The same goes for industrial production. “If production becomes too expensive, it is not there. We want to have a price signal as long as it is possible,” said the former IHS boss.
Kocher is skeptical about the approach of encouraging energy-intensive companies to stop or reduce production through short-time work, based on the model of the Corona crisis. In this case, the distinction is not so simple. However, there is state aid if a company has to close because of energy control. Details on the energy cost subsidy for businesses will be presented in the coming days. The economics minister was also cautious about further energy support for Austrian households – in addition to the brake on the electricity price. They should be there, but only for “particularly affected groups”, not on a large scale as with electricity.
Against tax on excess profits
How should the high expenditure on aid packages be financed? A discussion has erupted here, the European Commission wants a tax on excess profits from energy suppliers. Kocher rejects this. It is true that it is important to ensure that the “budgets do not get out of hand”. The economy and the associated tax revenues developed well, especially in the first half of the year. The minister argued that if these profits were taxed, there would be no money for the expansion of renewable energy sources.
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.
