voestalpine CEO Herbert Eibensteiner, usually a man of soft words in public appearances, made his point clear today at a press conference. “This law may be well-intentioned, but it will have the opposite effect. We are committed to climate protection, but with this law we are paying three times over: for more expensive gas, more expensive electricity and for rising personnel costs as a result of inflation.”
Since SPÖ leader Andreas Babler announced his approval of the EGG two weeks ago, contrary to the previous party line, and thus promised the required two-thirds majority in the National Council, the law could still be passed against all expectations. “Either the politicians responsible do not know what they are doing with it, or they do not care. Both are reprehensible,” says Eibensteiner. voestalpine fears that by 2030 there will be a billion euros in costs, half of which will come directly from the EGG. After that, the law would cost 150 million euros per year. It can be assumed that this would cost around 2,000 jobs to compensate for the burden, says Eibensteiner.
The law stipulates that certain amounts of biogas must be added to the gas supply. If this does not happen, penalties are due. The fixed amount of 125 euros per megawatt hour is an incentive for suppliers to keep the price of biogas as high as possible. The Federation of Austrian Industries criticizes this as the wrong pricing model because there is no incentive to offer biogas cheaply. It is therefore against the current proposal and feels that it has not been sufficiently involved in the creation of the law, says IV Managing Director Christoph Neumayer.
Representatives of the paper industry are also angry. Kurt Maier, CEO of the Heinzel Group and president of the interest group Austropapier, criticizes a paradox: “We already produce 200 gigawatt hours a year and use this for our own production. But this amount is not credited to us. We would have to compress the biogas, feed it into the grid and then buy it again.”
The National Council says that negotiations on the EGG are ongoing and that confidentiality has been agreed. However, a motion to set a deadline could be submitted in the next 48 hours so that the law could be voted on this week. The Greens are not the only ones who want this. The ÖVP also has a large lobby made up of representatives from agriculture who would like this for their own clientele.
ePaper
Author
Dietmar Mascher
Deputy Editor-in-Chief, Head of Business Department
Dietmar Mascher
What are the main criticisms of the Austrian Energy and Gas Grid Act (EGG) raised by industry leaders?
Here is a comprehensive and SEO-optimized article on the topic of the Austrian Energy and Gas Grid Act (EGG):
voestalpine CEO Slams Austrian Energy and Gas Grid Act: “Paying Three Times Over” for Climate Protection
In a rare display of strong words, voestalpine CEO Herbert Eibensteiner criticized the Austrian Energy and Gas Grid Act (EGG) at a press conference, stating that the law will have the opposite effect of its intended climate protection goals. Eibensteiner’s concerns are shared by several industry leaders, who warn that the EGG will lead to significant cost increases and job losses.
A Well-Intentioned but Flawed Law
The EGG, which was announced by SPÖ leader Andreas Babler, aims to promote the use of biogas in Austria’s energy mix. However, critics argue that the law’s implementation will lead to unintended consequences, including higher costs for gas, electricity, and personnel. According to Eibensteiner, voestalpine stands to lose approximately €1 billion by 2030, with half of that amount coming directly from the EGG.
The Wrong Pricing Model
One of the key concerns with the EGG is its pricing model, which incentives suppliers to keep biogas prices high. The fixed amount of €125 per megawatt hour is seen as a disincentive for suppliers to offer biogas at a competitive price. The Federation of Austrian Industries, which represents the interests of Austria’s industrial sector, has criticized the pricing model and feels that it was not adequately involved in the law’s creation.
Industry Leaders Sound the Alarm
Industry leaders are not the only ones voicing concerns about the EGG. Representatives from the paper industry, such as Kurt Maier, CEO of the Heinzel Group and president of Austropapier, have criticized the law for its paradoxical approach. Maier argues that the industry already produces 200 gigawatt hours of biogas per year, which is used for its own production. However, this amount is not credited to the industry, and it would have to compress the biogas, feed it into the grid, and then buy it back, creating a unnecessary and costly cycle.
Deadline Looms for EGG Vote
While negotiations on the EGG are ongoing, the National Council has agreed to confidentiality. However, a motion to set a deadline could be submitted in the next 48 hours, paving the way for a vote on the law this week. Both the Greens and the ÖVP have a strong lobby in favor of the EGG, with representatives from agriculture pushing for its adoption.
The Consequences of the EGG
If passed, the EGG is expected to lead to significant cost increases and job losses. Eibensteiner estimates that around 2,000 jobs will be lost as a result of the law, as companies struggle to compensate for the increased burden. The industry is urging policymakers to reconsider the EGG and work towards a more effective and sustainable solution for climate protection.
The Need for a Sustainable Solution
As Austria strives to meet its climate protection goals, it is essential to adopt policies that are both effective and sustainable. The EGG, in its current form, is seen as a flawed law that will have unintended consequences for the industry and the economy. It is imperative that policymakers work closely with industry leaders to develop a solution that promotes climate protection while also supporting economic growth and job creation.
Keywords: Austrian Energy and Gas Grid Act (EGG), voestalpine, Herbert Eibensteiner, climate protection, biogas, energy mix, industry leaders, job losses, cost increases, Federation of Austrian Industries, paper industry, Austropapier, Heinzel Group, National Council, deadline, vote, Greens, ÖVP, agriculture, sustainability.
Words in expressing his concerns about the potential negative impact of the EGG on the steel industry.
Controversy Surrounds Austria’s Energy and Gas Grid Act (EGG): Industry Leaders Sound the Alarm
The Austrian Energy and Gas Grid Act (EGG), a law aimed at promoting climate protection, has sparked intense criticism from industry leaders, who claim it will have devastating consequences for the economy and employment. Voestalpine CEO Herbert Eibensteiner, known for his measured public statements, did not mince
