Electricity Economic Act: Objectives & Updates (Austria)
austrian Energy Debate Heats Up: Calls for System Overhaul and Ambitious Climate Goals
Vienna – A heated debate in the Austrian National Council has highlighted deep divisions over the country’s energy policy, with calls for a thorough overhaul of the electricity industry and more ambitious climate targets. Lawmakers from across the political spectrum agree on the need for a balanced approach, but sharply diverge on the path forward.
Balancing Act and Systemic Concerns
The discussion centered on the need to reconcile security of supply, network stability, and economic viability in Austria’s energy sector. Kassegger emphasized that these goals have been historically neglected, necessitating a broader discussion about rising energy prices and the overall health of the energy system.
Network Fees and ELWG Criticism
Paul Hammerl (FPÖ) launched a strong critique of projected increases in network fees, dismissing forecasts of doubling without intervention as inaccurate. He also accused proponents of the draft Electricity Industry Act (ELWG) of “marketing flatteries” regarding promised electricity price reductions. A key point of contention was the timeframe for submitting feedback on the ELWG assessment, with Hammerl arguing the current schedule, falling mid-vacation, effectively excludes crucial expertise from the process. His call for a two-week extension was unanimously approved.
Greens Push for Urgent ELWG and 2040 Climate Target
Leonore Gewessler (Greens) positioned the ELWG as “urgently needed” to modernize Austria’s energy system and accelerate the energy transition. She advocated for a science-based EU climate target of a 90% reduction in net greenhouse gas emissions by 2040,compared to 1990 levels,and urged the federal Government to actively champion this goal. Gewessler’s resolution, however, failed to gain majority support. She also stressed the obligation for all EU countries to present updated national climate protection contributions (NDCs) by November 2025, ahead of the COP30 climate conference.
Lukas Hammer (Greens) criticized the ÖVP for blocking the ELWG proposal, arguing that the proposed network fee acts as a ”penalty tax” on those driving the energy transition, and instead, incentives should reward those contributing to renewable energy expansion.
The ELWG: A modern Framework for Austria’s Power Grid
The proposed ELWG, initially drafted during Gewessler’s tenure as Minister of Energy, aims to create a contemporary legal framework for the Austrian electricity market. The initiative,which also includes an Energy Poverty Definition law and amendments to the Energy Control Act,focuses on establishing clear rules for the rapid expansion of power grids to accommodate the increasing decentralization of energy generation. The Greens argue this will ultimately reduce energy costs, improve grid efficiency, and accelerate the adoption of renewable energy sources.
The committee emphasized the urgency of implementing the ELWG to ensure Austria meets its decarbonization goals and avoids potential penalties from the EU for non-compliance. the Federal Government is reportedly working on a new ELWG, requiring a two-thirds majority for passage.
Livestreams and video-on-demand recordings of National Council and Federal council sessions are available in the Parliament media library: http://www.parlament.gv.at/aktuelles/mediathek/
The draft ELWG can be found here: https://www.parlament.gv.at/gegenstand/XXVIII/A/198