“Situation wrong!” – This is how the price of electricity should be slowed down – Upper Austria

The horrendous electricity prices are becoming more and more of a burden, and not only for private individuals. The Chamber of Commerce is now also demanding regulation.

The situation on the stock exchange is currently “crazy”, according to Upper Austria’s Chamber of Commerce boss Doris Hummer. The price jumps by ten percent or more every day, says the president, according to ORF.

A state price regulation should prevent something like this in the future, especially in the transitional period until there is an EU-wide solution.

“Need legal regulation”

Hummer said: “We need a legal regulation here, that needs a two-thirds majority in the National Council. We have to reintroduce this price regulation for the electricity price here. The basic idea, as it was before the year 2000: We take the production costs of the electricity, then there there is a mark-up for the energy producers – and that is the price that is sold on the market.”

The graphic shows how electricity prices are generated in Austria.Austrian Energy Agency

You have to get out of the merit order principle, says Hummer. Roughly speaking, with this principle the price of electricity is determined by the most expensive power plant. In Austria, more than 80 percent of the electricity is generated from renewable energy sources (hydroelectric power, photovoltaics, wind turbines and biomass plants), but the price of electricity shot up here as well due to the gas crisis. That’s because the most expensive power plants here, too, are gas-fired power plants that generate electricity. And they determine the price.

Also FPÖ against current regulation

While FPÖ boss and LH deputy. Manfred Haimbuchner calls for an end to this merit order rule, there has been a flood of lawsuits against energy suppliers as reported. Reason: Consumers could not have known that their electricity from hydropower would increase so much due to high gas prices.

Nav Account representative time 09/01/2022, 06:00| Act: 09/01/2022, 06:00

The article is in German

Tags: Situation wrong price electricity slowed Upper Austria

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