Electricity is alarm: ELWG could have costs exploded!

Electricity is alarm: ELWG could have costs exploded!

The discussion about the planned Electricity Industry Act (ElWG) is making waves in the Austrian electricity industry. In a recent statement by Barbara Schmidt, the Secretary General of Austria's Energy, it is clear that there are massive concerns about the additional cost burdens for feeders. She fears that the reform could lead to a system break that endangers the competitiveness of domestic electricity producers. According to a study by Aurora Energy Research, the cost burden for feeding in electricity could even increase sevenfold, from the current 4 euros/MWh to 27.9 euros/MWh. vienna.at reports.

With a possible relief of 5%, the costs could rise to 6.2 euros/MWh. At 25% it would be 14.6 euros/MWh, while if the costs were evenly distributed a limit of 27.9 euros/MWh could be reached. These uncertainties are further exacerbated by the lack of a clear draft for the design of the ElWG. So far, only consumers have borne the network usage costs of around 4 euros/MWh, which consist of 3.04 euros/MWh for the network loss fee and 0.88 euros/MWh for the system performance fee.

Competition disadvantage and higher feed -in costs

However, the planned amendment could lead to feeders also sharing in the network usage fees, which is already leading to significant competitive disadvantages in Austria. According to Karl Heinz Gruber from Austria's Energy, the Austrian system is already expensive compared to other EU countries. While feeders in Austria already have to pay network fees for over 5 megawatts, other European countries such as Sweden and Ireland have even higher fees, while operators in many countries are completely exempt from these fees kurier.at explains this further.

Current concerns are also evident regarding the willingness to invest in new projects. An example of this is a gas power plant in Austria that has 5% higher production costs than a comparable one in Germany. The reform could also lead to an increase in the need for storage, while the willingness to invest in this area decreases. The situation is already tense, as around 500 statements on points of criticism in connection with the ElWG have been expected since August.

Reform and future of the network fee system

The reform of the ElWG requires a two-thirds majority in parliament, which requires the consent of parts of the opposition to cooperate. In order to advance development, clear steps should be taken by the end of the year. A discussion paper from the Federal Network Agency emphasizes the need for a reform of the network fee system in order to overcome the challenges of the energy transition. Proposals include, among other things, the participation of feeders in the network costs and a review of the collection of network fees for electricity feed-ins bundesnetzagentur.de emphasizes this.

In view of the previous developments, it becomes clear that Austria's energy sector is facing a pioneering decision. The possible financial impact on investments, prices and competitiveness on the European market could have long -term consequences. The intensive discussions and the multitude of incoming statements illustrate that the reform of the ELWG will have far -reaching effects on the entire industry.