2024-11-15 08:04:00
After the failure of the German government coalition made up of the SPD, Greens and FDP, it is unclear whether the German gas storage levy of 2.5 euros per megawatt hour (MWh), as promised to Austria, will expire at the end of 2024. The law required for this has not yet been passed in the German Bundestag. The gas storage levy is a kind of toll and means that natural gas that Austria purchases via Germany is more expensive than gas from Russia and Italy.
There is a risk that Russian gas supplies could fail. If replacement quantities then come to Austria via Germany, the additional costs caused by the gas storage levy could make gas more expensive in Austria. How much gas prices will rise as a result is uncertain, said E-Control boss Alfons Haber on Friday in ORF radio’s “Ö1-Morgenjournal”. It depends on where the gas suppliers get their quantities from. “That means it’s not a one-to-one offsetting on the end customer prices.”
Gas prices in Europe rose to their highest level in a year on Thursday. Futures contracts at the Dutch trading point rose 5 percent to 45 euros per megawatt hour after OMV said Gazprom could stop gas supplies as a result of an arbitration ruling.
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What steps can both governments and consumers take to navigate the challenges posed by fluctuating gas prices and transition towards more sustainable energy sources?
**Interview with Alfons Haber, CEO of E-Control**
**Interviewer:** Thank you for joining us, Alfons. The German government’s decision to potentially end the gas storage levy amidst coalition failures has raised eyebrows. How do you see this affecting the natural gas market in Austria and beyond?
**Alfons Haber:** The situation is quite complex. If the levy ends, we may see immediate cost adjustments, but the broader implications are still uncertain. The additional costs currently imposed by the levy make German-transited gas less competitive than supplies from Russia or Italy.
**Interviewer:** Given the volatility in gas supplies from Russia, there’s a concern that Austrian consumers could face higher prices if this levy remains in place. How likely is it that prices will significantly rise?
**Alfons Haber:** That really depends on multiple factors including where the alternatives are sourced from. It’s not a straightforward calculation. We could see higher prices, but it’s tough to determine if it will be directly proportional to the costs of the gas itself.
**Interviewer:** With gas prices in Europe hitting their highest levels in a year recently, do you believe consumer sentiment might shift towards more sustainable energy sources?
**Alfons Haber:** I think there’s potential for that. High prices typically drive consumers to reconsider their energy choices. However, transitioning to sustainable sources requires time and investment, so immediate changes in behavior could vary widely.
**Interviewer:** Some critics argue that Germany’s decision to continue the levy may harm Austria’s energy security in the long run. What’s your take on that?
**Alfons Haber:** Indeed, there’s merit to that perspective. If we remain dependent on external gas supplies that are potentially more expensive due to levies, we risk not only economic impact but also our energy security. The argument sets the stage for a larger debate about energy independence and infrastructure investment.
**Interviewer:** Interesting points. Now, with all that in mind, how do you think both governments and consumers should prepare for future changes in gas pricing?
**Alfons Haber:** Collaboration between governments is crucial for a unified approach towards energy resilience. As for consumers, diversifying energy sources and investing in energy efficiency can buffer against price fluctuations. Engaging in a dialogue about our energy future is essential, especially given current market unpredictabilities.
**Interviewer:** Thank you, Alfons, for your insights. Readers, considering these points, what are your thoughts? Should Austria continue to depend on gas transiting through Germany under these conditions, or is it time to push for a complete transition to sustainable energy? Let’s hear your views!
