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ECONOMY

Is Austria set for a gas price hike – and what can you do to avoid it?

E-Control, Austria's energy regulator, says they "hope" energy prices will be on their way to normal by next winter but that saving energy "is the order of the day".

gas energy, Spain
Austria has reduced its reliance on Russian energy in recent months. (Photo: Magnascan / Pixabay)

This week, Austria activated a “gas alert” as part of its emergency plan to ensure gas supply for the country over fears that Russia would cut off supplies if Western countries refused to make payments in rubles.

This Friday, Austria’s chancellor Karl Nehammer (ÖVP) said that the country’s gas importer OV has not received any documents on a contract change regarding the currencies, Krone reported. 

Nehammer added that the Austrian company has contracts with Russian Gazprom valid until 2024 and specifically stating payments would be made in euros and dollars. He described the Kremlin’s demand that gas be paid in rubles as a “political announcement.”

Still, Austria is currently on the first stage of a gas alert, according to an announcement made this week by the Federal Government’s Crisis Cabinet together with E-Control, the country’s energy regulator.

The Local spoke with representatives of the energy authority to understand more about the gas supply situation in Austria and the perspectives for the future.

Though the regulator reiterates that “households fall under the so-called protected customers and do not have to expect any rationing of gas consumption”, they also reinforce that every individual can help reduce gas consumption and that saving energy, overall, is the “order of the day”.

What is the “gas alert” emergency plan?

The early warning stage means that the surveillance and monitoring system that has been in place for weeks “will be tightened even further”, E-Control says.

The authority and the Austrian Gas Grid Management (AGGM), two institutions responsible for the gas market in the country, will deliver daily reports to the Climate Protection Ministry and the Federal Government.

READ ALSO: Ukraine: What does the government’s ‘gas alert’ mean for Austria?

There are three stages in the emergency plan. Only the third one contains the possibility of adopting energy control measures such as rationing. Even so, they do not target households but industries instead, E-Control confirmed.

What is the current situation regarding gas supply in Austria?

The gas regulator stated that there is currently a full and regular supply of natural gas from Russia, both via Ukraine and other transport routes.

The storage level is also low but not at an abnormal level for this time of the year. Therefore, even if there is a restriction or stoppage of incoming gas, that would not necessarily cause a supply problem in the country.

The country has also used less gas than in years before, with consumption in February 2022 5.3% lower than the same month in 2021, primarily due to warmer weather for the month, according to E-Control data.

What happens next winter?

“We hope that the war in Ukraine will be over by then and that gas prices will have returned to a more or less normal level so that households will not have to fear gas price increases”, according to the Austrian energy authority.

READ ALSO: EXPLAINED: Why are fuel prices increasing faster in Austria than elsewhere in the EU?

At the same time, spring is traditionally the period for refilling gas storage supply, especially after a law was passed requiring a strategic gas reserve large enough to cover gas consumption for a cold January month, E-Control explains.

“The challenge, however, is to obtain a corresponding amount of gas at reasonable prices for filling the storage facilities. Alternatives are still being worked on”.

The supply is not at risk for this cold season. Still, Austria’s energy controller said that national and European measures must be taken to support the tank filling in the coming months.

One of the alternatives includes buying liquified natural gas (LNG) that can also be used for industrial processes and heating – LNG arriving to ship terminals in Italy could be transported to the landlocked country via pipelines.

Another alternative could be buying natural gas from other producers, such as Norway.

What can private consumers do right now?

“Every individual can help to reduce gas consumption”, E-Control said.

“Saving energy is the order of the day not only at the moment but for climate protection reasons in general”.

The energy specialist highlighted that there are several ways to reduce gas consumption without sacrificing comfort. For example, lowering the room temperatures by just one degree means saving six per cent.

E-Control explains that saving energy is done in two ways: by changing habits and using modern technologies. Simply swapping old light bulbs for LED lights, for example, can bring enormous savings, which can help cut costs as energy prices continue high worldwide.

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VIENNA

Vienna reveals new plan for how to move away from gas heating

Authorities in Vienna want to replace the city's 600,000 gas heating systems with greener alternatives and have presented a plan for how they will do it.

Vienna reveals new plan for how to move away from gas heating

The “Vienna Heat Plan 2024” was presented this week which outlines a concrete strategy for replacing the city’s 600,000 currently installed gas heating systems with renewable energy alternatives.

Vienna has committed to ending its reliance on fossil fuels for heating and hot water by 2040.

As part of this goal, the capital wants to replace around 600,000 gas heating systems with renewable energy alternatives. On Monday May 8th the city presented the “Vienna Heat Plan 2024”, providing a clear plan for this transition.

The plan considers all buildings in the urban area and identifies where it is possible to expanding district heating, referring to a centralised heating system which efficiently serve multiple buildings.

The goal is to make district heating completely climate-neutral by 2040. Additionally, the plan also identifies areas where alternative solutions may be necessary, reported ORF.

The plan divides areas in three categories 

The areas in Vienna have been categorised into three groups based on demand and local conditions.

The first category include areas where district heating is most suitable.

The second category refers to areas with good potential for local heating networks. These networks can accommodate smaller, localised heating systems that serve buildings located close to each other. Additionally, the third category includes areas where individual climate-neutral heating solutions are needed for single buildings or properties, ensuring necessary adjustment to specific needs of a property.

Additional divisions within these groups have been made, considering factors like existing district heating connections and the possibility of expansion. The city wants to expand the district heating network to cover 1,700 kilometres in the future, according to Vienna.at.

READ ALSO: Austria climate activist aims to take fight to Brussels

Geothermal energy planned to be used in outer districts

The areas selected for local heating networks are mainly situated in the outer districts of the city. In those areas authorities plan to use geothermal energy, heat derived from the Earth’s core. Through the use of heat pumps, the plan is to supply heat to multiple buildings simultaneously, reported ORF.

READ NEXT: Vast Vienna wastewater heat pumps showcase EU climate drive

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