Electricity tax on the rise: Finance Minister plans revolutionary tax!

Electricity tax on the rise: Finance Minister plans revolutionary tax!

Austria is facing a tough political issue: Finance Minister Markus Marterbauer (SPÖ) has presented a draft law that provides for the introduction of a new special levy on electricity generation. This levy, called the “Energy Industry Transformation Contribution,” could significantly increase the financial burden on energy companies. According to reports, the levy could be three euros for each megawatt hour of green electricity generated and four euros for electricity from gas power plants, bringing in a total of up to 250 million euros annually. This would exceed the originally communicated 200 million euros for the extension of the energy crisis contribution, which has triggered alarming reactions in the industry, especially with regard to the financial burden on the domestic electric industry, which is already drawing attention to more expensive electricity.

Reactions within the coalition are mixed. ÖVP and NEOS are skeptical about the proposal, which has not yet been comprehensively discussed. The Ministry of Finance has underlined the urgency of the law: a quick agreement in the National Council is necessary. The committee is expected to discuss the model as early as this budget cycle, with a decision by Friday. Criticism also comes from the Vienna SPÖ because Wien Energie, the country's largest gas power plant operator, sees its interests at risk Small newspaper reported.

Plans meet with resistance

Discussion about the new levy is intense and there is currently a sense of pressure in government team interactions. Marterbauer and his team emphasize the need to rehabilitate state finances and at the same time secure a contribution from energy companies. It remains to be seen how the negotiations will develop, as the coalition partners apparently still see a need for clarification Austria reported. The initial situation remains tense and time is running out for an agreement in order to create clarity with regard to the energy industry plans.