Grid Segment

Statutory and regulatory framework in the Grid Segment

As of 1 January 2022, the grid usage fees of the electricity sector rose by between 7.9% at grid level 4 and 3.0% at grid level 7. This was attributable to higher upstream grid costs compared with the previous year. In addition to this, the regulatory parameters established remained stable in the 4th regulatory period.

The regulation on local grid tariffs for renewable energy communities came into force on 1 November 2021. It envisages a reduction in the grid fee for energy procurement within the energy community of between 28% and 64%.

The grid usage fees in the gas sector for consumers at grid level 3 rose by 5.5%. There was a substantial increase by 21.6% for end consumers at grid level 2. The reason for the increase was the lower tariff base in the previous year due to roll-ups.

The cost determination procedure for gas for the tariffs in 2023 and the fourth regulatory period were initiated in September 2021. In addition to wide-ranging requirements and queries from the authorities, expert meetings are being held to discuss and define the parameters for the fourth regulatory period. The focus to date has been on the future of the gas grids and the continuation or further development of the existing benchmark procedure.

Business development in the Grid Segment

The Grid Segment recorded a moderate increase in sales revenues by 3.7% to EUR 215.8 million in the reporting period. The EBIT of the Grid Segment amounted to EUR 41.9 million in the first half of 2021/2022. This represents an increase of 10.0% compared to the EBIT of same period of the previous year (EUR 38.1 million). This was due to regulatory tariff increases in the electricity and gas sector and higher distribution volumes, which had a positive effect on the Grid Segment's EBIT.

Electricity and 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 rose by a total of 1.2% from 4,208 GWh to 4,258 GWh in the first half of the current fiscal year. The increase was mainly in the commercial and residential customer sector, while there was a slight decline in the industrial customer sector.

In addition to the difficult conditions again experienced in the first half of 2021/2022 due to the COVID-19 pandemic, a sequence of several hurricane lows in February 2022 posed a challenge for grid operations. It was not only the individual events themselves, but the number of consecutive events in this period of time that placed a strain on the response teams. In this situation, the 110 kV high-voltage grid once again proved to be the strong and reliable backbone of the Upper Austrian electricity supply.

Despite uncertainties and on-going 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 and commissioning is scheduled for June 2022. In the “Mühlviertel Rohrbach – Langbruck Electricity Supply” project (Electricity Grid Master Plan Upper Austria, “Stromnetz-Masterplan OÖ.”, project no. 8b), the expert dialogue with the IG Landschaftsschutz Mühlviertel (IGLM; environmental protection action group) was concluded and an EIA application for a declaratory finding was submitted at the beginning of March 2022. Discussions with landowners were also resumed and municipalities were informed. Construction work on new substations in Hörsching, Ohlsdorf and Kronstorf West continued, and work on expanding the Wagenham substation began in February 2022.

Gas grid distribution volume to end customers

in GWh

Ensuring supply quality for grid customers, in particular due to the increased integration of local electricity generation facilities, remains very challenging. The very large number of grid connection requests for power infeed systems in the reporting period led to bottlenecks in the processing procedure and even in the electricity grid itself. Where free grid capacities are unavailable, applications for feed-in are only met with reverse power restrictions since the autumn of 2021.

In particular due to higher procurement by industry and power plants, distribution volumes to end users from the gas grid rose by 4.5% to 12,116 GWh compared to the previous year (11,592 GWh), while volumes at grid layer 3 (residential and commercial) fell.

The natural gas grid was extended through construction of high-pressure pipeline with a length of approx. 750 m and a grid connection for an industrial customer. Station conversions to boost delivery capability and repairs to facilities, along with maintenance measures, such as the remediation of shortfalls in coverage and repairs of insulation defects in the high-pressure gas pipelines, are being implemented as required for operations.