The Federation of Austrian Industries (IV) calls for the creation of an “extreme peak model” to compensate for peaks in gas prices. Costs incurred in purchasing gas are subsidized by the state above a certain limit. It also advocates a ceiling on electricity prices (electricity price ceiling). “In the current crisis, electricity prices (…) should be limited by a temporary EU-wide agreed government intervention and decoupled from the gas price,” said the IV.
To this end, a maximum price for electricity should be enforced on the basis of the existing merit order, for example through state support for gas consumption for power plants. The IV demands a greater role for the state. This should be supported by measures on the consumption side to ensure security of supply.
Market Adjustment Required
In the medium term, existing EU-wide electricity market design rules need to be adapted and “liquidity-enhancing measures” are also required. Among other things, state guarantees are needed to secure working capital loans and the introduction of loss relief. In addition to state intervention in these areas, the CO₂ price will be set to zero for the time being and EU state aid legislation will be amended.
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.