E-Control board member Wolfgang Urbantschitsch expects electricity and gas prices to fall by the middle of the year. There will not be a drop to the level of two years ago, but: “We no longer see those peaks in prices”, he said in the “ZiB 2” on Wednesday evening. He confirmed that there are transparency issues with consumer energy bills in some places.
Regarding the ruling of the Commercial Court of Vienna, which overturned the price increase of the partially state-owned Verbund in May 2022, Urbantschitsch said it was “surprising” and “very far-reaching”. However, it is a judgment in the first instance, now it is awaiting appeal from the Verbund group.
“For the good of society”
In any case, there is a social interest in low energy prices, but it is also about the well-being of companies. It should be remembered that many electricity companies are majority owned by the public sector and company law requires all owners to be treated equally. “Ultimately, of course, it is always about acting in the interest of society,” says the head of the national regulatory authority.
“You Can Wait Now”
In any case, the judgment of the commercial court would mean for customers: “You can now wait a little longer, because if this price change has not come into effect, the customers will get their money back.” In principle, however, the following applies: If the legal opinion (of the commercial court) prevails, it will become much more difficult for companies to react to market developments once they want to change their prices, according to Urbantschitsch, who also fears that electricity suppliers will move from the end could withdraw customer market completely, which would be detrimental to competition.
A week ago, the Vienna Commercial Court annulled the price increase of the electricity group Verbund from May 2022. According to the Association for Consumer Information (VKI), the clause on the adjustment of the working price of electricity is surprising and disadvantageous for customers. He had filed a lawsuit on behalf of the Ministry of Social Affairs. The verdict is not yet final, the union has already announced an appeal.
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.
