Trouble over SPÖ plan

Zuckerl collects special levy for electricity producers

Announced and then immediately withdrawn: The special levy for electricity producers planned by Finance Minister Markus Marterbauer (SPÖ), which had caused a stir in the industry during the week, will not be introduced after all. Instead, excess profits are to be accessed more quickly ...

However, the "energy crisis contribution" will be tightened compared to the original plans - the governing parties have agreed on this, according to the Ministry of Finance on Friday. This is necessary in order to achieve the estimated savings of 200 million euros for the measure.

This means that the "energy industry transformation contribution" is off the table, confirmed a spokeswoman for the Minister of Finance. Instead, however, larger shares of the electricity producers' profits are to be skimmed off to balance the budget.

Excess profits can be skimmed off more quickly
The revenue threshold above which the "excess profits" are to be skimmed off is now 90 euros per megawatt hour (previously 120 euros) in accordance with the amendment to the Budget Consolidation Act, which is to be passed by the National Council on Friday.

Everything that energy companies earn above this value per megawatt hour is to be taxed at 95 percent instead of the original 90 percent. For new plants such as wind farms, the threshold is 100 euros and the tax rate is also 95 percent. The extended energy crisis contribution is to apply to all electricity producers from April 1; the tax will be calculated retrospectively for the entire year's profits.

"With the new regulation, we are ensuring budget consolidation without increasing energy prices and without stopping investments in renewable forms of energy," explained Economics Minister Wolfgang Hattmannsdorfer (ÖVP) in a press release on Friday afternoon. "Security of supply, renewable energies and stable prices remain the focus of our energy policy - without additional burdens for consumers," the Minister promised. Renewable energies would continue to play a key role in the domestic energy supply.

Social Democrats satisfied with the result
The SPÖ was also satisfied with the agreement: "With the SPÖ's participation in government, the energy companies are now making a fair contribution to budget restructuring," said SPÖ energy spokesman Alois Schroll. In recent years, the energy companies had made billions of euros in excess profits - and customers had had to foot the bill. The planned energy crisis contribution would contribute 200 million euros annually to budget restructuring. "This will provide scope for investment in education and health," said Schroll.

The energy industry has welcomed the move away from the special levy, although the faster absorption of excess profits is viewed critically: "Compared to what was discussed at the beginning of the week, this approach is the lesser of two evils," explained Michael Strugl, President of Oesterreichs Energie in a press release.

"Any intervention" in the energy market is, however, a burden for the industry. 
industry: "The electricity industry is prepared to make its contribution. In the next step, however, we now see it as the turn of politicians to provide equally necessary relief for customers," said the lobbyist.