Due to the suspicion of price fixing and price gouging, a number of well-known pellet producers have been searched. Previously, high demand, lack of supplies from abroad, higher production costs and panic buying by consumers were cited as reasons for the explosion in heating fuel costs. The fact is: the price of pellets has risen by 148 percent in a year, according to trade association ProPellets. Still, they remain the cheapest source of energy – unless you have an old natural gas supply contract.
ProPellets Austria, the industry representative of the pellet industry, strongly rejects the rumors of price fixing. “Of course we are fully cooperating with the authorities,” explains CEO Christian Rakos. He is convinced that the Federal Competition Authority will not find any misconduct on the part of his association. According to Rakos, pellets are considerably cheaper in Austria than in neighboring countries. He also explains that retailers take supplies in the home market seriously: pellet exports have fallen by 11 percent.
From 22.9 cents to 56.9 cents in one year
But the frustration among owners of the stoves, which are touted as environmentally friendly, is great in view of the cost explosion: in September 2021 you paid an average of 22.9 cents per kilogram, the following year it was 56.9 cents if you use a household amount of six tons. This corresponds to a price increase of 148 percent within a year.
According to ProPellets, in western Austria (Tirol and Vorarlberg) you have to dig deeper into your pockets to ensure a warm room with the wood pellets. In the north it is somewhat cheaper (Salzburg, Upper Austria, Lower Austria and Vienna) and in the south (Burgenland, Styria, Carinthia and East Tyrol) the cheapest. Compared to our German-speaking neighboring countries, domestic prices are even cheaper, as ProPellets calculates: in Germany you have to spend almost 20 cents more at 76.4 cents per kilo than here.
However, compared to heating with electricity and fuel oil, pellets are still the cheapest option. An exception to this is natural gas, but only if you have an old contract. New customers pay almost twice as much as existing customers.
Industry association gives reasons for cost explosion
The director of ProPellets explains the cost explosion with three arguments. To begin with, production costs have risen. Sawdust, electricity and transportation and spare parts have become more expensive. In addition, demand has grown – not only here, but also internationally. In Austria alone, sales of pellet heating systems are expected to double by 2022. Last but not least, there are also war-related delivery errors in Europe. Pellet imports from Russia, Belarus and Ukraine to Europe have been interrupted.
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.
