The energy cost subsidy for companies is presented in the Council of Ministers. It is high time for the Federation of Austrian Industries (IV), as IV President Georg Knill emphasizes: “For the Austrian industry, the Austrian economy, there are still no shelter packages for the high energy costs. A lot has been done for the households.” But the situation is now “dramatic”.
These are energy-intensive companies with high certificate prices, which then receive at least a partial compensation. And also for energy-intensive companies with electricity costs of more than three percent of turnover, so that they receive support.
The energy cost subsidy was approved in July with 450 million euros. “Due to the huge increase in energy costs, we have demanded that this be increased to 2.5 billion euros.” He expects the package to be at least a billion euros or more. “But we assume it won’t be enough. It roughly compensates for a fraction of the increases.”
Cost goes on the “substance”
Knill points to the average company with energy costs of €1 million last year, which has now risen to €10 million. “According to an analysis by our chief economists, this year’s average energy costs represented two and a half times annual profit. It is clear that this affects the content of the company. So it’s really dramatic.”
“Not a market, but a war economy”
As far as gas prices are concerned, the IV chairman hopes that price peaks at European level will level off. “It hasn’t been a market for a long time, it’s a war economy.” However, this problem could only be solved at European level. “You will understand that it is not easy for us as an interest group to call for market intervention – but the industry is at stake.”
Despite the weak euro, many products can no longer be exported because the costs are too high, Knill emphasizes. But not only political decisions in Brussels are necessary. Austria also needs to work on alternatives.
Source: Krone
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