Chamber of States confirms compensation for network loss costs for 2023
Vienna (PK) – With the amendment to the Electricity Cost Subsidy Act, which was approved by a majority in the Bundesrat today, larger households with more than three people are given greater consideration in the so-called electricity price or electricity cost brake, which has been in force since December 1, 2022, through the “electricity cost supplement grant”. This amounts to €105 per year for each additional registered person. Another change affects those people who only obtain their private electricity requirements from an electricity supply contract classified as agricultural, forestry or commercial. From June 1, 2023, they will also be entitled to the electricity cost subsidy.
The constitutionally required two-thirds majority for the higher compensation for grid loss costs was given by a broad majority of the state chamber. In 2023, €558 million or 80% of the additional costs for electricity customers will be cushioned.
Electricity cost supplement for households with more than three people
According to the coalition parties, the aim of the electricity cost brake is still to reduce the cost burden on household customers by ensuring an affordable electricity supply. As before, the service is limited to June 30, 2024. It is now clear that the support includes both the basic quota for electricity consumption of up to 2,900 kWh/year per metering point and the “electricity cost supplement” – i.e. the additional quota for households with more than three people – includes.
In order not to unjustifiably disadvantage people who only obtain private electricity for their residence from an electricity supply contract classified as agricultural, forestry or commercial, the amendment will also give this group of people access to the electricity cost subsidy from June 1, 2023, up to At the end of 2024, so that the subsidy payment also covers 19 months.
The electricity cost brake that will apply from December 1, 2022 will already bring relief to electricity customers, and 700,000 households with more than three people will now receive an additional €105 per head per year, said Alexandra Platzer (ÖVP/O).
Doris Hahn (SPÖ/N) also welcomed the extension of the electricity price brake. However, the SPÖ mandatary missed the accuracy of the measure and located a bloated administrative apparatus. In the best case, the measure might curb inflation by 0.6%, which is “a drop in the bucket” at more than 11% inflation.
Markus Steinmaurer (FPÖ/O) also signaled approval, but criticized the handling of the funding applications by the Austrian Research Promotion Agency, which was overwhelmed with it. In addition, Steinmaurer called for the additional tax revenues caused by inflation to flow back, for example through tax cuts for employees and employers. A motion for a resolution tabled by the FPÖ mandatary regarding “Create justice in the Electricity Cost Subsidy Act”, which calls for the application of the electricity cost subsidy for households that do not have a separate electricity supply contract, remained in the minority in the vote.
According to Adi Gross (Greens/V), it is a socially accurate measure that has the effect of slowing down inflation. The expansion to predominantly small agricultural and commercial operations is also to be welcomed, explained Gross. Basically, however, it is regarding supporting farms on their way to energy self-sufficiency.
Energy Minister Leonore Gewessler spoke of a “further building block” among a large number of relief measures. Half of the 700,000 households will automatically receive the relief without an application. For all those for whom this is not possible, there will be an application model from mid-April.
Higher compensation for network loss costs: €558 million will be cushioned in 2023
In 2023, the compensation for grid losses for households will be increased to €558 million. It is intended to cover 80% of the additional costs. Due to the high energy prices, the costs for the procurement of grid loss energy have also increased significantly, the government factions point out. Originally, €675 million was budgeted for this. In the meantime, the energy prices have fallen significantly, so that one can currently assume a lower cost value, according to the amendment to the Electricity Industry and Organization Act 2010 submitted by the ÖVP and the Greens in the National Council.
The compensation for network loss costs is quick and unbureaucratic help, explained Christoph Stillebacher (ÖVP/T). Austria continues to have a firm grip on inflation, which is why the government is focusing on further relief measures.
Günther Novak (SPÖ/K) spoke of “absurdly high electricity prices” due to the turmoil on the energy markets. As a result, the network loss costs have increased enormously. The path does not lead past a systemic solution under European law. Only the expansion of renewable energies can sustainably reduce electricity costs in the future.
Although Johannes Hübner (FPÖ/W) advocated obliging producers to compensate for network losses free of charge, he signaled his parliamentary group’s approval. However, this is only necessary because the government has failed to take measures once morest the failure of the electricity market.
Adi Gross (Greens/V) emphasized that it was regarding a technical adjustment of the Electricity Industry and Organization Act with socio-political objectives in order to ensure reduced costs for customers. In order to get out of the “dilemma”, the goal must be to expand renewable energies, emphasized the Greens mandatary.
For Energy Minister Gewessler, this is another measure that will help “Austrians get by with their money”. It will still take a while before the currently lower energy prices reach the end customers. We are already working on a systemic solution that is tenable under European law, but we still need time for that, according to Gewessler. (Continued Federal Council) med
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