The ÖVP’s complete lack of a plan is reflected in the incompetent babble whenever someone holds out a microphone and no prescribed text can be read from a piece of paper. Nehammer considered skimming off the immoral usurious profits of state-affiliated energy companies with a profit tax. Stock market losses of 5.4 billion euros were the result. The left-leaning medium DerStandard maliciously comments that such proposals should actually come from the SPÖ.
A comment by Willi Huber
The starting point is the fact that Austrian households can no longer afford the tariffs, which have risen by a factor of five. Mass impoverishment and mass impoverishment threatens. Normally, a country introduces communism first and only then becomes impoverished. The ÖVP tries the other way around.
The energy suppliers, which are mostly owned by the “public sector”, are squeezing exorbitant fees from their customers, although nothing has changed in their producer prices for energy. Therefore, they expected billions in profits, while large parts of the population will probably be driven into private bankruptcy. The former ÖVP top politician Michael Strugl is responsible at Verbund AG. EVN is chaired by Stefan Szyszkowitz, and as a trained Austrian in Lower Austria, which is dominated by the ÖVP, you don’t have to speculate about the sending party.
Every state intervention leads to more chaos
The reason for the overall misery is a large number of government interventions in the market. Be it earlier nationalized energy industry, the later “privatization” which is not, because, for example, Verbund is still over 80 percent in the hands of the state or state-related companies. Be it utopias of the energy transition, unilateral price promotions, political decisions, giving up neutrality in order to attack Russia economically and much more – the list grows endlessly. We are in a shambles, because a political decision in this area always leads to a chain reaction that causes even more damage. It has never been possible for prices to level off at a realistic level or genuine free competition in the energy market.
It must be kept in mind that state actors rarely if ever have even the slightest trace of economic training. ÖVP Chancellor Nehammer earned an “MSc” at the Donauuni Krems after high school – in “political communication”. Anyone who knows the Donauuni Krems and how titles come about at this institution will have their own ideas. In any case, the Chancellor’s knowledge of economics is likely to be limited to receiving and spending pocket money during his school days.
When the ÖVP overtakes the Greens and the Socialists on the far left
The ÖVP, which is descending into a bottomless pit, also noticed that the population was beginning to seethe. When it comes to existential questions, the fun stops. So ÖVP Chancellor Nehammer commented on the price situation – and made a communist proposal: After the energy suppliers were 80 percent in public hands, one could skim off 80 percent of the profits. The stock market reacted with a record loss: the statement had led to a price drop of 5.4 billion euros. DerStandard scoffed on Saturday: “If the ÖVP Chancellor makes suggestions that should come from the SPÖ”. It must be a hard blow for the political left when a “conservative” party leader is more communist than the party leaders of all left parties combined.
Of course, one cannot predict how a free market would actually behave. However, the following development would be conceivable and logical with minimal state influence: All energy producers whose manufacturing prices are well below those that depend on gas and oil would suddenly be the most attractive companies for customers. You could and would clearly undercut the competition. The prerequisite is that the energy industry does not rest on the shoulders of large corporations, which can also dictate prices through their market dominance, but is guaranteed by a large number of smaller providers. Only then is it possible for prices to level out in the course of competition at the level that is appropriate because the customer has real choice.
The big problems of the “energy transition”
In days like these, however, not only hydropower is attractive, nuclear power once again beats oil and gas by far. Wind and solar systems, on the other hand, can only be used to a limited extent in Austria. According to calculations, wind farms are only economical in coastal areas (even if they pollute the sea there with lubricants and other substances). Solar systems require huge areas and lots of sun, both of which are not available to a reasonable extent in Austria. Generation IV nuclear power plants would not only be safe, you can also use them to contribute to nuclear disarmament and recycle nuclear waste. Addressing this issue would be an obligation for any shrewd conservative party. But we don’t have one, because out of political calculation people submit to the irrational hatred of nuclear power anchored by the Greens and their media. The Fukushima lie firmly cemented this hatred and sealed Germany’s downfall in terms of energy policy.
Austria is only better off here because numerous hydroelectric power plants contribute to the energy supply. The fact that the price of hydroelectric power is now quadrupling – unnecessarily – is the starting point of the problem.
Consumer fraud in the billions: 200 billion euros in profits for EU energy suppliers
Unimaginable 42 billion euros in “corona aid” distributed in Austria
Verbund boss Michael Strugl (ÖVP) expects a profit of two billion – and increases electricity prices