Austrian steelmaker Voestalpine AG has called on the Austrian federal government to ensure the continued use of electricity price compensation for Austria’s energy-intensive industries.
According to the statement, most EU countries, including all of Voestalpine’s major competitors, have been using this instrument for more than 10 years and some have already extended it until 2030. In Austria, the Electricity Price Cost Compensation Act currently provides only a temporary solution that retroactively applies to the year 2022.
“For companies like Voestalpine, electricity price compensation is an important factor for competitiveness and investment. The failure to utilize electricity price compensation is causing lasting competitive harm to Austria’s energy-intensive industries, particularly Voestalpine. We are losing customers, particularly in Europe, as they are unwilling to bear the additional costs. The situation is serious, which is why we are urging federal and regional politicians to finally ensure fair competition - and to work with industry to develop future solutions for electricity price compensation,” Herbert Eibensteiner, CEO of Voestalpine, said.
The company is investing €1.5 billion in the transformation. However, Voestalpine is receiving less than €100 million in support for this effort.