In the late afternoon, the Austrian federal government, together with the regulatory authority E-Control, did the same as the German and in turn proclaimed the early warning level of the red-white-red emergency plan. However, its design is as imprecise as the German one – it does not contain specific scenarios in the event of a gas stop. But the information: gas storage facilities in Austria are currently about 13% full.
three levels
The national emergency plan contains three phases: An early warning phase, in which the gas market situation is monitored very closely. The second, alert level, takes effect if the gas supply situation deteriorates. The state has not yet intervened here, but the industry is being asked to look for alternatives. Level three is the emergency level. Gas is no longer supplied in this one, measures to control energy are possible.
The reason for this is Russian President Vladimir Putin’s announcement that he would only accept rubles as payment for gas deliveries to the West and not euros or dollars as was previously the case. At worst, this means no more gas deliveries.
On Tuesday, however, the Kremlin chief assured German Chancellor Olaf Scholz that European companies could continue to pay their Russian gas bills in euros.
But what would happen if the situation changed and the gas supply stopped? Then a power steering event would occur. In Austria, the Minister for the Greens, Leonore Gewessler, who is responsible, among other things, for energy, climate and the environment, decides by ordinance what exactly the scenarios are like. “The regulation is ready and in the drawer”, says a spokeswoman when asked by KURIER. Among other things, this ordinance would give the regulatory authority E-Control great powers to take action.
However, the ordinance does not regulate which companies would have to run out of gas and in what order. “You would need numerous regulations.” Because corporate consumption is not always the same. The decision in case of an emergency is up to E-Control in coordination with the ministry.
The situation has been closely monitored since the beginning of the crisis in Ukraine, says Carola Millgramm, head of the gas department at regulatory authority E-Control, KURIER.
The legal basis for the aforementioned regulation is the Energy Control Law. This defines, among other things, who is considered a major buyer of gas – that is, industrial companies with consumption greater than 50 megawatt-hours. They are the first to have their gas supply rationed. Escalation levels are also stipulated here, which are similar to emergency plan levels. Private households are protected from reduced or discontinued gas supply. At E-Control, gas flows and storage levels are analyzed daily in close cooperation with the ministry and other stakeholders, as Millgramm says. “Austria are very well prepared.”
Discontent in the food industry
In any case, the Austrian food industry is not involved in any emergency plans. And this despite the fact that the industry has been rated supply and system relevant and many processes are energy intensive and gas dependent – from processing raw materials to freezing finished products. “The industry requires about 3.5 terawatt hours per year. Gas as an energy source for production cannot be quickly replaced; on the contrary, a constant supply is essential for the cooking, cooking, cooling or filling processes in food production,” the food industry recently appealed in a letter to the Ministry of Climate.
“If the industry or its upstream suppliers have to reduce their production, this could also affect the production of animal feed and food. This should be avoided in any case, in the interest of ensuring that the population has enough food and drink.”
“Bread Before Steel”
So far there has been no response. “The Climate Ministry claims to have an emergency plan in place, but does not pass it on,” says Josef Domschitz, the association’s managing director. He now doubts that such a contingency plan exists. “We were verbally assured that in the event of a gas crisis, the ‘bread before steel’ should come, but exactly what the scenarios actually look like and what happens when it is not revealed.”
According to a Gewessler spokeswoman, the food industry is involved in developing crisis scenarios – but companies can also consult directly with E-Control.
Avoid production stops
Andreas Mörk, Director General of the Industry Division of the Austrian Economic Chamber, told KURIER that production stoppages or stoppages of companies “must be avoided at all costs”, it must be a joint effort. “The last time this was done successfully was in January 2009.” Also important are “ensuring storage for the coming winter and financial relief for energy-intensive companies.” In any case, he blames the climate and environment ministry here: “This requires more consultation and intensive coordination from the climate and environment ministry.” The IV industrialists association put it pragmatically: “IV is represented on the Advisory Board of the Energy Directorate and is therefore involved in developing plans in the event of a crisis.”
SPÖ and Neos reviews
Opposition political reactions to the announcement in Germany did not take long. Criticism of the alleged lack of preparation came from SPÖ and Neos.