The liberalization of the electric energy market in Austria (and its consequences for Carinthia)

In the past the energy markets were characterized by growth and shortage. Especially in Austria structures were firmly established, with fixed areal restraints of trade for the suppliers, marked political influences and an emphasis on supply security. The "ELWOG" passed by the National Council and coming into force on 19 February, 1999 is the basis for the liberalization auf the Austrian electric energy market. It brought about the most extensive restructuring since the "2. VerstG" of 1947, changing the market from a monopoly market to a competitive one with respect to energy generation, trading and selling, while only the transmission of energy remained a monopoly. On I October, 2001 ("ELWOG 2000") the energy market in Austria was fully opened, and all end-users (more than 3 million) can freely choose between all suppliers. Free trading in electric energy became big business, and specific stock exchanges were founded. In this paper the liberalization process in the Austrian energy market and its influence on Carinthia is described. Whereas large industries are offered the opportunity of enormous savings, prices for households are only reduced marginally due to "ecological surcharges" and special energy taxes. In order to gain competitive advantages internationally, the Austrian EVUs (energy supply companies) had to cut down costs by reducing their staffs which had especially serious consequences for Carinthia. Cooperation and mergers in line with the liberalization result in a complete restructuring of the energy business. According to the "ELWOG" electric energy generation based on renewable sources is compulsory, thus contributing to the reduction of the greenhouse effect of emissions. Moreover the planned expansion of the European Union will offer Austria the chance to become the hub of electricity trading in Central Europe.