Austria backs EU cap to end ‘madness’ of runaway power prices

VIENNA (Reuters) – Austrian Chancellor Karl Nehammer backs a European Union-wide cap on runaway electrical energy costs, he mentioned in a press release issued by his workplace on Sunday.

Austria’s conservative-led authorities was initially sceptical on the thought of capping energy costs however it has warmed to the concept as they’ve continued to rise in step with hovering gasoline costs following Russia’s invasion of Ukraine.

“We should lastly cease the insanity that’s going down in vitality markets. And that may solely occur by way of a European answer,” the assertion quoted Nehammer as saying, including that he would search to persuade holdouts within the bloc.

“One thing has to occur eventually. This market won’t regulate itself in its present type. I name on all of the EU 27 (member states) to face collectively to cease this worth explosion instantly.”

Austria is closely depending on Russian gasoline notably in trade and heating, acquiring about 80% of its provide from Russia earlier than the conflict. Most of its electrical energy, nonetheless, comes from renewables and there’s rising incomprehension among the many Austrian public on the market system the place gasoline and energy costs are carefully linked.

The market worth for electrical energy should come again down and should be decoupled from gasoline to carry it nearer to precise manufacturing prices, Nehammer mentioned.

“We can not let (Russian President Vladimir) Putin decide the European electrical energy worth day-after-day,” he added.

The Czech Republic, which holds the rotating EU presidency, will suggest a rare assembly of the EU Power Council as quickly as doable to cope with hovering vitality costs, Czech authorities officers mentioned on Friday as they search to construct European help for vitality worth caps.

The assertion by Nehammer’s workplace mentioned he would push for a sustainable mannequin that may be carried out rapidly, with out elaborating. It added that he had mentioned the problem together with his Czech and German counterparts.

(Reporting by Francois Murphy; Enhancing by Frances Kerry)