The National Council decided on Tuesday to further expand energy support for companies. This year they will receive an extra 3.5 billion euros to cover the high costs, which, together with last year’s support, is 7 billion euros. Furthermore, the compensation for the high grid loss costs caused by wholesale prices for electricity consumers and the heating costs subsidies were increased (with the votes of all political groups except NEOS). The votes were accompanied by heated debates.
For companies, the energy cost subsidy, which was already awarded for the months of October, November and December, will now be continued in 2023. There is less attention for energy intensity and the financing intensity for extra energy costs in the lowest level has doubled from 30 to 60 percent. The funding directive required for the energy cost subsidy 2 is being prepared and must then be submitted to the EU Commission for notification, the Ministry of Economic Affairs said.
Brunner back after a fall
Furthermore, the compensation for the high grid loss costs due to wholesale market prices for electricity consumers has been increased from 260 to 558 million euros. As a result, 80 percent of the additional costs are covered by the federal government. An average household should save 80 euros. The federal states will receive an extra 450 million euros for this heating costs made available. How countries use the subsidies is up to them. Finance Minister Magnus Brunner (ÖVP), who celebrated a comeback in the House after his accident and a two-week break from injury, justified this by saying that the countries on the heating costs allowance decades of experience
In the debate, Karlheinz Kopf (ÖVP) defended the measures because it was “important that we secure the basis for our prosperity, the prosperity of many people in Austria”. Jakob Schwarz (Greens) emphasized that the coalition’s support measures had already saved the economy from the feared malaise in the Corona years.
“It’s just treating the symptoms”
Minister of Economy and Labor Martin Kocher (ÖVP) admitted that it was about fighting symptoms. The expansion of renewable energy and changes in European market design are also needed. Environment Minister Leonore Gewessler (Greens) mainly defended the compensation for the rising grid loss compensation, because it would help households.
Above all, the SPÖ criticized the late arrival of the bill, as Alois Schroll stressed – the budget committee was also the wrong body to deal with. Axel Kassegger (FPÖ) said that it is about symptom relief that citizens should pay for themselves. Karin Doppelbauer (NEOS) referred to economists’ statements that Austrian financing was far too expensive and not accurate.
Ask about gas price cap and sanctions off
The demands for a gas price cap were heard time and time again. SPÖ deputy club boss Jörg Leichtfried referred to examples in Spain, Portugal and France, where government intervention had caused energy prices to fall. In particular, he accused the ÖVP of preventing such measures in Austria from “blind ideology”. Instead, many millions would now be made available to companies again. The FPÖ called for an end to sanctions against Russia.
The union-affiliated Momentum Institute criticized the fact that Austria pays small businesses significantly more than Germany. This is a “design flaw” because it pays off big time for those companies that “rarely if ever face international competition”. And just like with the Corona support, many companies would receive large sums of money from the state, even if they made a profit.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
