No access to contracts

Government inactive: New gas price shock looming

The gas hub in Baumgarten, Lower Austria

(Bild: APA/JOE KLAMAR)

After two years of war, Austria has still not managed to reduce gas imports from Russia, let alone withdraw from them. The Neos see the reason for this in the government's inaction and disunity. The government defends itself against the accusation and cites measures that have already been taken.

A recent NEOS inquiry submitted to the "Krone" shows that after two years of discussions, the Ministry of Climate Protection has still not inspected the OMV-Gazprom contracts. The Pinken speak of an ÖVP blockade in the attempt to create a legal basis for access to the contracts.

"Pure lip service"
The announcement by Federal Chancellor Karl Nehammer (ÖVP) to examine whether there are possibilities to gain access to the contracts via the parliamentary route of a law "turns out to be mere lip service", criticizes energy spokesperson Karin Doppelbauer.

NEOS energy spokesperson Karin Doppelbauer

(Bild: Markus Wenzel)

Others acted, Austria did not
The green-led climate ministry has made a proposal on how to gain access to gas supply contracts. However, no agreement could be reached with the ÖVP on this. According to the response to the inquiry, no internal or external review of the exit options from the contract between OMV and Gazprom has yet been commissioned. Austria has thus remained inactive in examining the options for exiting the contract, while other Western European countries have either terminated their long-term supply contracts due to the supply shortfall in 2022 - or have taken legal action against Gazprom.

Gazprom threatens to cut off supplies again
Currently, a court ruling could lead to the seizure of payments and thus contribute to a new delivery stop by Gazprom. "The federal government is delaying the most important case for Austria as a business location. Since the start of the war, more than ten billion euros have flowed out of Austria for Russian gas. The risk of a delivery stop has increased massively because Gazprom's unilateral delivery stop has legal repercussions. At the same time, the federal government has failed to strengthen its independence from Russia, to rapidly expand the gas infrastructure (WAG loop) and to exert massive pressure on Germany to abolish the harmful gas levy," explains the pink MEP.

The gas hub in Baumgarten, Lower Austria

(Bild: APA/JOE KLAMAR)

Gas prices are rising again
"We have been putting pressure on the federal government for years to implement feasible diversification steps - from booking pipeline capacities from Norway to expanding the WAG loop, there seems to be no agreement. There is still no binding timetable for implementation. The Federal Government's inaction shows a lack of responsibility. The public will have to foot the bill again, as gas prices are now rising again due to the uncertainties."

Exit requires several steps
In order to guarantee Austria's energy security and ensure economic stability, several measures need to be taken. The diversification of gas sources is crucial in order to reduce dependence on Russia and cushion future price shocks. In addition, the German government should take action at European level to create a legal basis for exiting problematic contracts together with the EU and to get the EU internal energy market off the ground: The German gas levy must be fought much more actively and loudly because it makes Austria's imports more expensive.

Government lists steps already taken
The government firmly rejects the accusation of inaction as populist: "The federal government has taken appropriate precautions and also recently adopted a comprehensive package on affordable and secure energy in the Council of Ministers, which includes the construction of the Wag Loop - the pipeline from the west - and the acceleration of the expansion of renewable energies. In addition, the strategic gas reserve and the provision of funds to support the procurement of non-Russian gas (EUR 100 million per year) were extended. The Federal Government also assumes that the gas suppliers have taken the necessary measures for possible supply shortfalls," according to the Ministry of Finance.

Suppliers to take mandatory precautions for gas outages
The government factions introduced an amendment to the Gas Industry Act in the last plenary session. Suppliers will be obliged to draw up concepts in which measures taken and planned with regard to a possible loss of gas supplies are to be presented to the regulatory authority. This is a constitutional provision. It therefore requires a two-thirds majority. In other words, the approval of the SPÖ or FPÖ.