Grid Segment

Statutory and regulatory framework in the Grid Segment

In the electricity sector, grid usage fees increased by 0.2% to 1.7% at grid level 7 as of 1 January 2021. This was due to an increase in the cost base compared to the previous year, mainly attributable to higher investments and volume development. In addition to this, the regulatory parameters established remained stable in the 4th regulatory period.

At the same time, the grid usage fees in the natural gas sector for consumers at grid level 3 fell by 4.3%. In contrast to this, there was an increase of 2.9% for consumers at grid level 2. The reason for the increase was higher upstream grid costs and volume development.

The general economic conditions for natural gas have been defined for the 3rd regulatory period since 1 January 2018, but the Austrian Federal Economic Chamber and the Federal Chamber of Labour have objected against the stipulations made by the regulatory authority. The proceedings are pending in court or have already been concluded in part. Some of the parameters set for the natural gas grid for the 3rd regulatory period were approximated to the parameters for the electricity grid by these decisions, which means a deterioration in the economic environment for the gas grid.

Business development in the Grid Segment

The Grid Segment recorded an increase in sales revenues of EUR 8.5 million (4.3%) to EUR 208.1 million in the first half of 2020/2021. In addition to higher electricity grid revenues due to higher tariffs and sales volumes, this was also due to higher volumes at grid level 3 in the natural gas sector.

The EBIT of the Grid Segment rose by EUR 8.1 million (29.5%) compared to the first half of 2019/2020 and amounted to EUR 35.6 million in the reporting period. The improvement in the operating result mainly reflects the increase in sales revenues.

Electricity and natural gas grid as the backbone of the Upper Austrian supply infrastructure

Electricity grid distribution volume to end customers

in GWh

Compared to the same period of the previous year, the electricity grid distribution volume in the industrial customer sector, and in the commercial and residential customer sector, rose by a total of 2.4% from 4,110 GWh to 4,208 GWh in the first half of the current fiscal year.

In contrast to the same period of the previous year, weather-related disruptions were at an extremely low level in the reporting period. An increase in planned shutdowns was recorded in the first quarter of the fiscal year. This is due to deferred maintenance activities prompted by the first COVID-19 lockdown in spring 2020. Since the beginning of 2021, the planned shutdowns have returned to the usual level.

In the grid connection activities in the electricity sector, increases were recorded compared to the comparison period of the previous year despite more difficult conditions due to the COVID-19 pandemic; in the natural gas sector, the number of new house connections declined due to expected changes in the statutory environment and the upcoming ban on natural gas heating systems.

Natural gas grid distribution volume to end customers

in GWh

Construction activities for the Almtal and Kremstal Electricity Supply project (Electricity Grid Master Plan Upper Austria, “Stromnetz-Masterplan OÖ.”, Project No. 16) proceeded according to schedule in a project environment that remained difficult. Completion is planned for June 2021. Despite uncertainties and additional challenges in the Pramtal South Electricity Supply project (Electricity Grid Master Plan Upper Austria, “Stromnetz-Masterplan OÖ.”, Project No. 17), it was possible to complete the planned construction activities. Construction work on the new Kronstorf West substation started in September 2020 and is scheduled for completion in October 2021. Work on the construction of a new substation in Hörsching has been underway since the end of October 2020. In the Mühlviertel Rohrbach – Langbruck Electricity Supply project (Electricity Grid Master Plan Upper Austria, “Stromnetz-Masterplan OÖ.”, Project No. 8b), the grid operators' statement was sent to all project communities at the beginning of November 2020. In January 2021, talks with representatives of the region were resumed and an application for preparatory work was submitted.

In particular due to lower procurement by industry and power plants, distribution volumes to end users from the natural gas grid fell by 4.8% to 11,592 GWh compared to the previous year (12,176 GWh). In contrast, the higher demand for space heating due to the lower average temperatures in the reporting period had the effect of increasing volumes on the natural gas grid.

As for the natural gas grid, the new pressure reducing station RS 233 Zipf was commissioned towards the end of the 2020 calendar year; it supplies the community of Neukirchen an der Vöckla and business customers with natural gas. In October, a complex cathodic corrosion protection system and a new heating system were commissioned in Reitsham. Maintenance measures, such as remediation of shortfalls in coverage and repairs of insulation defects in the high-pressure natural gas pipelines, were implemented as required for operations.