On Tuesday, the National Council decided to make major interventions in the income of oil and gas companies, but also of electricity producers. The corresponding laws received the approval of the ÖVP, Greens and NEOS, as well as one for the – voluntary – reduction of electricity consumption. The measures did not go far enough for the SPÖ, the FPÖ only saw symptom relief and marketing slander.
The EU Emergency Measures Regulation adopted in October provides the framework for the proposed legislation. The energy crisis contribution for fossil fuels will tax the crisis-related profits of oil and gas companies in the second half of 2022 and 2023. The average profit over the years 2018 to 2021 is used as a comparison period.
If the current profit is more than 20 percent above this average, 40 percent of that is skimmed off. However, to support investments in renewable energy and energy efficiency, a deduction was provided that reduces the contribution rate to 33 percent. In principle, the investments must be made between January 1 of this year and December 31 of the following year.
With the electricity energy crisis contribution, the revenues from electricity generators with an installed capacity of more than 1 MW (megawatt) are capped at 140 euros per megawatt hour (megawatt hour). This affects sales of domestically generated electricity from wind, solar, geothermal, hydro, waste, lignite, bituminous coal, petroleum products, peat and biomass fuels, with the exception of biomethane. The maximum yield rises to 180 euros per MWh if investments in renewable energy can be claimed in 2022 and 2023.
Voluntary power reduction is also coming
The third measure is the Electricity Consumption Reduction Act. The aim is to reduce electricity consumption during “peak hours” (8am to noon and 5pm to 7pm) by at least five percent on average to lower electricity prices, minimize fossil fuel use and reduce the risk of supply bottlenecks . The measures must be voluntary. If measures, such as objections and appeals, do not lead to the goal, tenders can be put out to reduce electricity consumption.
The criticism came from the SPÖ, because instead of sucking off six to eight billion euros, as proposed by the social democrats, the coalition only gets one to two billion euros in excess profits. What you leave here will cost the industry a gas price cap – then likely financed with new debt, predicted SP mandatary Kai Jan Krainer.
FPÖ locates “marketing scam”
Hubert Fuchs (FPÖ) accused the coalition of settling for symptom relief rather than working to change the merit order principle in the electricity market. The law on the reduction of electricity consumption, on the other hand, is a “pure marketing smear” from which only the advertising budget of Minister of the Environment Leonore Gewessler (Greens) benefits.
Finance Minister Magnus Brunner (ÖVP), on the other hand, defended the laws. He spoke of “extraordinary times that require extraordinary measures”. As a result of the crisis, especially the war in Ukraine, there is an imbalance in the energy markets and the opportunity for profit. Skimming some of it over a limited period of time makes perfect sense. Market intervention at European level would have made sense, he admitted, but there was no majority for it.
Jakob Schwarz (Greens) spoke of a “mountain of money” that some companies had encountered due to the inflationary crisis. These should be limited. He was proud of the current resolutions, as they decided to tax arbitrary profits in an effective and sustainable way, which is considered exemplary in other countries. Investment opportunities in renewable energy will continue to exist.
ÖVP: reacted faster than Germany
Karlheinz Kopf (ÖVP) underlined that people react much faster than, for example, Germany. The NEOS also agreed. However, Karin Doppelbauer called for the income not to be distributed “via the famous watering can”.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
