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ENERGY

How Austria plans to secure the food supply in the event of a blackout

The energy crisis and war in Ukraine have raised fears of blackouts in Austria this winter. While the risk is low, there are now plans in place to distribute food if the worst happens.

How Austria plans to secure the food supply in the event of a blackout
Austria's grocery retailers have agreed to an emergency plan in case there is a blackout. (Photo by Burak The Weekender / Pexels)

Grocery retailers in Austria have agreed on an emergency plan to secure the food supply to the nation in the event of blackout.

The agreement followed a meeting with Energy Minister Leonore Gewessler (Greens) and Agriculture Minister Norbert Totschnig (ÖVP) on Tuesday (November 29), reports ORF.

FOR MEMBERS: Energy crisis: What to do in case of a power outage in Austria

A statement released following the meeting said: “As a system-critical infrastructure, the domestic food retail trade has a social responsibility to be prepared for emergencies and to be able to ensure the basic supply of the population even in the event of a blackout.”

What is the emergency plan for Austria’s food supply?

If Austria is hit by a widespread blackout, all grocery stores will close to protect the supplies.

On the second day, supermarkets will open from 10am to 3pm, but staff will hand out bags of fresh food at the front of the shops and customers will not be allowed to enter.

This will take place at Spar, Interspar, Maximarkt, Billa, Penny, ADEG, Sutterlüty, Hofer, Lidl, Nah- und Frisch, Unimarkt and M-Preis stores.

The bags will contain ready-made food, water, non-perishable bread and canned goods. Convenience products and candles will be sold for cash. Baby items and hygiene products will be available on request.

If a blackout extends to a third day, only dry food will be distributed.

Additionally, all Austrian households are advised to have a supply of food to last for 14 days, as well as around €100 in cash per family member.

READ MORE: Who to call and what to say in an emergency in Austria

How secure is Austria’s energy supply?

Austria is a country with a stable electricity supply – with most of the power coming from hydroelectric or wind power farms.

In 2020, hydropower accounted for 55 to 67 percent of the electricity generated in the Alpine country. The leading electricity companies operate around 130 hydropower plants, especially taking advantage of its mountainous location.

According to the country’s Climate and Energy Ministry, wind power accounted for 10 percent, while solar 4 percent. In total, around 80 percent of Austria’s electricity comes from renewables.

Vienna has one of the most secure supplies worldwide, according to the independent regulatory authority E-Control. Moreover, the current figures on the subject of security of supply show that the Viennese were only affected by a power failure for just under 18 minutes a year – an improvement from 2021.

The capital is also equipped with “black start-capable power plants”, which can start up independently without outside help – thus ensuring supply even if a prolonged widespread power blackout should occur in Europe.

The situation in the rest of the country is similar. But Viennese authorities have asked the federal government to enter into talks with the federal states to develop a national emergency plan. 

Emergency preparation guidelines for the general population include keeping a flashlight with working batteries in case of a power grid malfunction, keeping a battery-powered radio in your home and even having non-perishable food and potable water in the household.

READ ALSO: Reader question: What are the chances of blackouts in Austria this winter?

Austria’s energy emergency system

Since March, shortly after Russia invaded Ukraine, Austria has been at level 1 (the early warning level) of the alert system related to energy consumption.

However, due to the aggravated situation surrounding gas deliveries, the increasing number of cases of suspected sabotage of gas pipelines to Europe and the current developments relating to the Ukraine war, an alert level (level 2) could be expected for Austria.

Level 2 is declared if the gas situation deteriorates. At this stage, businesses are encouraged to use alternatives to natural gas whenever possible. 

Level 3 – the emergency level – is activated when gas can no longer be supplied and the current demand can no longer be met. Measures for industry, such as substituting natural gas with other energies as energy control measures, are to be put in place. 

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ENERGY

EXPLAINED: Why are gas prices still so high in Austria?

Austrian households are paying more for gas than elsewhere in Europe. So why are prices so high?

EXPLAINED: Why are gas prices still so high in Austria?

Gas prices in Austria reached their highest peak in early 2023 and have since remained at around the same level.

The significant increase in gas prices in the country sets it apart as a special case compared to other European countries. The reasons behind this situation lie in a combination of different factors, including the dominance of a few suppliers, increased margins of energy suppliers, and customers unwilling to change suppliers or because they are locked into long-term contracts.

Here we go into detail about the different factors.

Dominant suppliers

The energy market in Austria is dominated by a few state-owned or semi-state-owned suppliers, such as Wien Energie, OMV, and EVN. This lack of competition allows the dominant suppliers to control pricing, potentially leading to higher prices for customers.

Increased margins of suppliers

It has been possible for Austrian energy suppliers to increase their profit margins in response to the rise in gas prices. They have adjusted their pricing indexes to correspond to the higher cost of gas, and therefore maintained or sometimes even increased their profit margins.

READ MORE: Where in Austria will electricity and gas prices rise and fall in 2024?

Delayed price adjustment

The fluctuations of gas prices in Austria are passed on to customers but there is a longer delay compared to other European countries.

This delay, in combination with long contract lock-ins and backward-looking pricing, creates a situation where customers may continue to pay a higher price even if the market prices drop. For example, in autumn 2023, Wien Energie made an offer to its gas customers if they committed for one year. Since then, gas prices have decreased, but the customers were still locked into their contracts.

Low customer switching rate

Customers in Austria show low willingness to change energy suppliers. This results in them sometimes staying with their current provider despite higher prices, a situation which reduces competition in the market and allows suppliers to maintain higher prices.

Impact of gas supplier contracts

Even if long-term gas supply contracts with Russia may have been intended to secure cheaper gas prices, market changes and disturbances in supply have led to increased costs for energy suppliers and thereby also for customers.

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