Electricity price relief: WKÖ urgently calls for an extension until 2030!

Electricity price relief: WKÖ urgently calls for an extension until 2030!

The Austrian Economic Chamber (WKÖ) has welcomed the federal government's new relief measures. These include the introduction of an electricity price cost equalization law for 2025 and 2026, which is aimed at supporting domestic industry. The aim of the law is to avoid indirect carbon leakage and thus prevent the relocation of production or the migration of companies to third countries. Jochen Danninger, Secretary General of the WKÖ, emphasizes the need to extend the law until 2030 in order to ensure planning security and competitiveness for Austria as a business location. The need for action is seen as acute in order to secure prosperity in Austria and strengthen the domestic economy.

According to the information from DEHSt Since the third trading period of the EU Emissions Trading System (EU-ETS), installations no longer receive free allocations for their emissions from electricity generation. This regulation, which has been in force since 2013, means that electricity producers pass on the CO2 costs of electricity generation to their customers. Electricity-intensive industrial companies that feel increased pressure to ensure their international competitiveness are particularly affected.

Measures against carbon leakage

Electricity price compensation is intended to support these companies by cushioning indirect CO2 costs. This is not only a response to rising production costs, but also a necessary measure to prevent the relocation of production and the increase in CO2 emissions in countries outside the EU emissions trading system. In this context, the European Commission has identified sectors that pose a high risk of carbon leakage, including pig iron, steel and ferroalloys. CLIMATE reports that the revised EU ETS Directive sets criteria for determining a carbon leakage list.

In total, this list includes 63 sectors and sub-sectors, covering approximately 96% of industrial emissions. This shows how important the measures against carbon leakage are for European industry.

Budget and planning security

However, Danninger also points out that in Austria there is currently not enough budget funding for the implementation of these measures. This could jeopardize the implementation of the Electricity Price Compensation Act. In order to exploit the full scope of the EU State aid guidelines by 2030, early and comprehensive planning would be required. Other EU member states, such as Germany, have successfully implemented similar instruments since 2013.

Ensuring a stable economic basis and preserving jobs in domestic industry is therefore crucial in the coming years. The successful fight against carbon leakage and the support of electricity-intensive industries will not only be desirable but also necessary for Austria's competitiveness in the international market.