“In the past, the cost of energy was the third or fourth largest cost factor. It is now the largest or second largest item,” says Morales, pointing out the problems of trade in Europe. With a return on sales of 3 to 4 percent, there’s nothing left after the recent increases in electricity and gas prices,” said Juan Manuel Morales, CEO of retail group IFA and president of EuroCommerce, the European trade association.
“Originally it was said that trade would not be affected as much. And trade was ignored,” adds Jürgen Roth, WKÖ Association Chairman for energy trading and Vice-President of EuroCommerce. “And now the costs are exceeding the profitability,” says Roth. A common European strategy is therefore required, because: “We have 27 national aids within Europe.”
For example, Roth suggests suspending the merit order for a while. The electricity price is based on the most expensive power plant that is used to cover the demand. And gas-fired power plants are currently the most expensive electricity producers because of the Russian sanctions. “In 6 to 12 months, not only the trade will have a problem, but also the manufacturers and the other sectors.”
In the medium term, the share of renewable energy in electricity in Austria is to be increased from currently just over 70 percent to 100 percent. However, the demand for electricity will also increase in the coming decades – not least because of electromobility. An electricity requirement of 100 TWh can be expected, added Roth, who is also a member of the supervisory board at the energy supplier Verbund.
Source: Nachrichten
