Austrian industrial companies see a difficult year ahead. In addition to the tough KV negotiations, there is now pressure on the energy market. The German government recently agreed on high subsidies for industrial electricity prices. This threatens to put Austrian industry at a competitive disadvantage.
The industrial association calls on the Austrian federal government to join the Germans and extend and expand electricity price subsidies for industry. IV General Christoph Neumayer and Deputy Secretary General Peter Koren mentioned three specific points in an interview with the “Krone”:
– an extension of the electricity price compensation until 2030. This was previously only available for 2022.
– a reduction in energy taxes for electricity and gas to the minimum permitted (0.5 instead of 1 euro per megawatt hour)
– the dismantling of the so-called electricity price zone separation with Germany (a kind of border that Germany introduced in 2018)
„The domestic industry is currently facing major challenges and is currently in a deep recession. High energy costs, intra-European subsidy races and excessive bureaucracy are additional burdens – so there is an urgent need for action now, otherwise our European neighbors and competitors will eventually withdraw,” said Neumayer.
Electricity price compensation has been developed for high CO2 prices; Simply put, companies waive the CO2 costs for purchasing electricity. Almost all our neighboring countries will have introduced electricity price compensation by 2030. In Austria it was not available until 2022.
Germany subsidizes its industry with approximately 28 billion euros. If Austria were to follow this example to the same extent, it would cost around €240 million. The IV believes that this is a necessary step to prevent competitive disadvantages. In addition to extending the electricity price compensation, the industry is also demanding an extension of the energy tax reduction after 2023 and at the same time a reduction in the EU minimum tax. rate.
Third, the industry is calling for a rapid expansion of the electricity infrastructure to get closer to the German electricity market. Germany lifted the common price zone between the two countries in 2018. The reason for this was the introduction of bottleneck management at the border connection points between Germany and Austria, which cannot handle the required electricity production. Since then, the domestic economy has borne 2 billion euros in additional costs every year compared to Germany due to higher electricity prices.
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.
