Economic Committee: Environmental funding is intended to promote the sustainable transformation of industry

Coalition decides on easier access to environmental subsidies, postpones opposition motions on electricity prices and grid expansion

Vienna (PK) – The coalition parties want to make the funding instrument for investments in the decarbonization of industry more flexible. This is to be made possible by a change in the allocation method, which the economic committee passed today with the votes of the coalition factions. The funding for the transformation of industry should therefore, as is the case with other funding, not only be awarded in the context of tenders.

Two opposition motions on energy issues were postponed by the ÖVP and the Greens. The NEOS are in favor of more speed in grid expansion with regard to renewable energies and address the role of distribution grid operators. The Liberals are of the opinion that many increases in electricity prices in recent months cannot be legally justified. They are therefore demanding a refund to end consumers if electricity price increases should prove to be illegal.

The Economic Committee took note of a report by Energy Minister Leonore Gewessler on the release of diesel from the mandatory emergency reserves in September 2022 by a majority, without the votes of the Freedom Party. Energy Minister Gewessler informed the MPs that Austria will have achieved the replenishment of the so-called emergency reserve of oil and oil products by the end of March. In addition, the gas storage facilities are currently two-thirds full, the minister said.

Funding for the transformation of industry should become more flexible

The Economic Committee was presented with a legislative initiative by the coalition parties on the Environmental Promotion Act, which originally only contained editorial adjustments (3255/A). With an amendment, the coalition factions in the Economic Committee introduced an innovation in the allocation method of an important funding instrument for the transformation of the economy. As Lukas Hammer (Greens) explained, the funding vehicle for transforming the economy represents a completely new, ambitious instrument for environmental funding in order to be able to achieve ambitious goals for phasing out fossil fuels. It is currently still in the pilot phase. The proposed amendment contained a small but essential change that should make the funding instrument more flexible. Small and medium-sized projects could thus be funded without a prior call for tenders, provided there are no state aid requirements to the contrary. Of course, an open, clear, transparent and non-discriminatory award procedure must be ensured and state aid requirements must be complied with, emphasized Hammer. According to the application, the change should initially be limited to December 31, 2023.

Christoph Matznetter (SPÖ) and Michael Bernhard (NEOS) criticized the short-term submission of the amendment. However, both also emphasized that their parliamentary group would review the motion’s usefulness and possibly give its approval in the plenary session of the National Council.

NEOS call for rapid expansion of the renewable energy grid

The NEOS call for more transparency and innovation on the issue of the expansion of the energy network and on connections and fees from the distribution system operators (2753/A(E)). Since the conversion of the energy system to renewable energies is of the utmost importance, his group is calling for a package of measures to optimize the role of distribution system operators in the energy transition, explained NEOS MP Michael Bernhard. According to Berhard, these key companies in the energy system should be held more accountable in terms of transparency and a culture of service and communication. Although many promises were made to expand the grids, especially with regard to renewable energy, these have not been fulfilled. His parliamentary group’s motion is aimed in particular at ensuring that companies guarantee connections for renewable energy systems and must quickly ensure the corresponding infrastructure. More transparency is required not only for the expansion plans, but also for the grid connection fees for new systems.

Christop Stark (ÖVP) objected that a lot had been invested in the expansion of the networks in recent years. There is no doubt that demand has increased sharply due to current developments. However, regulatory provisions would not have allowed expansion “in advance” and having customers pay for an oversized network. The companies must also be given time to implement their plans, he justified his request for an adjournment.

Federal Minister Leonore Gewessler emphasized that the expansion of the networks is being pushed ahead rapidly. She pointed to an amendment to the Electricity Industry and Organization Act (ElWOG) that is being drafted, which will also take into account the role of distribution network operators as important partners in the energy transition. One of the plans is for the companies to submit multi-year expansion plans. In addition, a study in Styria found out what obstacles there were to connecting photovoltaic systems in order to be able to implement corresponding improvements.

FPÖ demands repayments in the case of “illegal” electricity prices

From the point of view of the FPÖ, the current electricity price increases are often not legally justifiable. The Liberals are therefore calling on the federal government to take measures against this and to influence domestic energy supply companies in which the public sector has a stake as far as possible. Above all, excessive additional costs must be reimbursed to the electricity end consumer if there has been such an “illegal electricity price increase”. In his justification for the application, FPÖ MP Christian Ragger pointed to several procedures in which such illegality had been clearly established (3210/A(E)).

Lukas Hammer (Greens) spoke of an unclearly worded motion that did not explain what the minister could do to influence private companies, and considered an adjournment appropriate.

Gewessler expects the mandatory emergency reserves to be fully replenished by the end of March

After an incident in the OMV refinery in Schwechat, crude oil and crude oil products were released from the Austrian mandatory emergency reserves in the summer of 2022 in order to stabilize the energy market. As Energy Minister Gewessler explained in the committee, a total of four releases from the mandatory emergency reserve took place in agreement with the Main Committee of the National Council. The report presented to the Economic Committee dealt with the release of 60,000 tons of diesel to ensure the short-term supply of the domestic market in September 2022. Control Measures Ordinance transmitted, Gewessler explained (III-837 dB). 60,000 tons of diesel could thus be supplied to the mineral oil market in Austria in order to avoid bottlenecks. According to the ELG, the re-storage of the quantities that were released in September 2022 was completed on November 30, 2022, Gewessler informed the MPs. She can also report that the mandatory emergency reserve can be expected to be fully refilled by March 31, 2023, the minister added.

Christoph Matznetter fundamentally questioned the current storage system for crude oil and crude oil products as well as natural gas and believed that companies were allowed to sell reserves at high prices and to refill them when prices had fallen again. The system thus secures them a “Körberlgeld” that is not justified and must be returned to the customers. Matznetter also wanted to know whether sabotage could be ruled out in the incident at the Schwechat refinery, which made the release of the emergency reserve necessary in the first place.

Michael Bernhard (NEOS) wanted to know what the gas reserve was like for next winter and whether there were plans to stock alternative energy sources, such as some wood pellets.

Axel Kassegger (FPÖ) criticized the federal government’s approach to gas storage. Since they bought when prices were high and sold after prices had fallen again, the republic was at risk of losing a lot. Estimates would assume a loss in value of the strategic gas reserve of €3.2 billion, which is not a negligible amount.

Lukas Hammer (Greens) pointed out that the emergency reserve belongs to the companies, so the state has no influence on prices, but can only order release, which ensures that prices are stabilized. The natural gas stockpiling was done in response to a situation where there was no way of knowing whether gas supplies would be stopped completely, and was therefore absolutely right in terms of security of supply. In addition, the existence of a strategic gas reserve itself ensures a relaxation of the market situation and thus lower prices for customers. His parliamentary colleague Jakob Schwarz added that Austria had reacted to the problem of excess profits raised by companies during the crisis with an excess profit tax, although it had done more than the EU stipulated.

Energy Minister Gewessler also defended gas stockpiling as the right decision to get Austria through the winter in good shape. There is basically good news about gas storage facilities. These are currently a little more than 66% full. In principle, the Republic only considers the strategic gas reserve for emergencies. If it were to be used, it was specified that the sales price had to be close to the procurement costs, Gewessler countered the bill from FPÖ MP Kassegger. Security of supply is also an important issue and also has its price, said the minister.

A significant factor for the good result is undoubtedly the cost-cutting measures, which must continue to be pushed. However, the coming winter will undoubtedly be a challenge again. Austria therefore supports the EU initiative for a joint procurement process for gas, which has now been legally launched and must now be implemented operationally. Many companies have already expressed their interest in it. Alternative energy sources also play a role when it comes to security of supply. There is currently no stocking of wood pellets, but NEOS MP Bernhard learned that her department is examining whether there are opportunities to do so.

In the case of petroleum and petroleum products, stockpiling is purely private and regulated by EU regulations. The Federal Government only decides on the release in agreement with the Main Committee of the National Council, explained the Energy Minister. Excess profits would be skimmed off via the excess profit tax. As far as the incident in the Schwechat refinery is concerned, it had been investigated in detail. There were no indications of sabotage, she told SPÖ MP Matznetter. (End Economic Committee) sox