In terms of energy and climate policy targets, many further developments are expected in the second half of the 2021/2022 fiscal year. At the EU level, in view of the dramatic geopolitical developments triggered by the Russian-Ukrainian war, the Commission intends to publish specifications for filling underground gas storage facilities and increasing the resilience of the EU-wide energy system. Austria will pass the required regulations in the second half of the fiscal year as part of the Renewable Energy Expansion Act package. Work is also underway on revising the Federal Energy Efficiency Act (EEffG) and, with regard to a revised electricity market design, a fundamental adaptation of the ElWOG. The realignment of the Climate Protection Act for 2030, the Renewable Heat Act, the Austrian Hydrogen Strategy and the amendment to the Environmental Impact Assessment Act are also under discussion as well.
As the Russian-Ukrainian war continues, accompanied by the discussions on a possible European gas embargo and/or the risk of supply restrictions on the part of Russia, gas and electricity prices are expected to remain highly volatile with an upward trend in the second half of the 2021/2022 fiscal year. The concrete economic impact of the measures currently being planned to increase gas storage provisions is still virtually impossible to predict. If the war situation de-escalates, an immediate calming effect on energy price developments can be expected.
Against the backdrop of volatile energy markets and the related procurement risk, tightly meshed integration of procurement and sales processes will play a central role in the coming months. On top of the impact of the statutory environment – as exemplified by the Renewable Energy Expansion Act (EAG) and the amendment to the Energy Efficiency Act (EEffG) – on further sales activities, the organisational effects of bundling Telekom GmbH’s and Fiber Service OÖ GmbH’s FTTH activities in BBOÖ Breitband Oberösterreich GmbH will be reflected in the sales structure in the second half of the fiscal year. On account of a recent statement by the Supreme Court on price adjustment clauses, and other factors, the General Terms and Conditions (GTC) for electricity and gas used in the consumer sector need to be revised once again.
In the procurement sector, work on the Ebensee pumped-storage power plant project will push forward intensively in the second half of the 2021/2022 fiscal year. The focus will be on detailed planning and tender planning for the project in order to create a basis for a potential construction decision in 2023.
The general regulatory conditions for the Grid Segment for the fiscal year can continue to be assessed as stable. Detailed cost audits relating to the upcoming regulation periods for gas and electricity will be carried out by the regulatory authority in the current and next fiscal year. On top of the challenges arising from the Renewable Energy Expansion Act package, the current circumstances mean that more in-depth discussions on gas as an energy carrier and the future role of the gas grid can be expected. Another focus of work for the second half of the year will be the preparations for achieving compliance with the Network and Information Systems Security Act (NISG).
In the Telecommunications business area, the focus in the second half of the 2021/2022 fiscal year will be on the operational implementation of the two transactions which were effected. The objective is to design new or optimise existing interfaces between Telekom GmbH and BBOÖ Breitband Oberösterreich GmbH, and adapt the internal Group processes relating to the metering service transferred to Netz OÖ GmbH. In addition, it is essential to sharpen the focus and improve stability in the remaining areas of responsibility.
Activities in the Czech Republic Segment in the second half of the fiscal year will be centred on whether EU subsidy programs can be used in the field of energy efficiency. In this context, the intent is to develop projects for heat and water supply and waste water management. The future development of the market in the Czech Republic will be influenced by whether the current geopolitical developments will accelerate – or even slow down – the exit from coal-based energy generation. The current developments on the electricity and gas market, which are dramatic in terms of costs, are being closely monitored. This specifically applies to the risk of replacement procurement for energy due to supplier failures, especially as the drastic price increases are putting suppliers, operators and, thus, customers under massive pressure. The services provided to municipalities and cities remain stable, although – here too – there are signs of greater reticence in terms of investments.
In the Waste Management Segment, higher costs for the use of logistics services are also anticipated for the second half of the 2021/2022 fiscal year, driven by a further increase in inflation. On the other hand, prices for the recycling materials recovered paper and metal are expected to remain high in the coming months, with a correspondingly positive impact on earnings in the segment. The contractually agreed new arrangement for cooperation with eww ag on the expansion and consolidation of the heat supply in the Wels area will be implemented as of 1 May 2022.
In its function as an energy supplier majority-owned by the Province of Upper Austria, Energie AG will continue to make every effort to ensure reliable supplies to its customers in the second half of the fiscal year, despite the potential impact of the Russian-Ukrainian war. The strategic objective of long-term orientation of all services to customer needs will be maintained; the strategic focus will also continue to be on the areas of digitalisation, innovation, regionality and financial stability, as well as on the energy transition and circular economy, and the turnaround in mobility.
Against the backdrop of the fragile economic development and geopolitical uncertainties, current forecasts are naturally exposed to a high degree of uncertainty. Based on the stable foundation of the Group’s diversified business portfolio, and assuming that the sanctions against Russia are not extended to gas trading and that there are no supply restrictions on the part of Russia, Energie AG expects earnings for the 2021/2022 fiscal year to develop above the level of the previous year due to the exceptional market situation and one-time effects.
Linz, 27 May 2022
The Management Board of Energie AG Oberösterreich
Chief Executive Officer
DDr. Werner Steinecker MBA
Chairman of the Management Board
CEO
Dr. Andreas Kolar
Member of the Management Board
CFO
Dipl.-Ing. Stefan Stallinger MBA
Member of the Management Board
COO