Grid Segment

Statutory and regulatory framework in the Grid Segment

The Electricity Industry Act (ElWG), which was under review in the second quarter of the reporting period and is intended to replace the previous Electricity Industry and Organisation Act 2010, is expected to result in significant changes to framework conditions. The developments resulting from ElWG must be viewed as fundamentally positive in many areas. However, from the grid operator's point of view, major changes are still required; these changes were put forward in the course of the public consultation process.

The grid utilisation fees in the electricity sector fell by between 0.2% and 3.83% compared with the previous year. The main reason for the slight decrease in grid tariffs was the drop in upstream grid costs.

The grid utilisation fees for gas fell by 3.4% for consumers at grid level 3 and by 28.5% for consumers at grid level 2. The reason for this is the lower grid loss costs and upstream grid costs.

The fifth regulatory period in the electricity sector began on 1 January 2024 and will run for another 5-year period. The regulatory authority introduced changes to the regulatory environment. The "weighted average cost of capital" (WACC) key figure for new investments will now be updated annually for both the electricity sector and the gas sector. A WACC for electricity and gas of 6.33% (before taxes) was set for new investments in the 2023/2024 fiscal year.

There was also a change in the system for determining the adjustment of costs assignable to the grid operator price index (NPI). The Austrian National Bank's inflation forecast for 2024 forms the basis for the NPI in 2024. Two years later, the NPI will be adjusted using the actual inflation figures.

Business development in the Grid Segment

In the reporting period, sales revenues in the Grid Segment amounted to EUR 225.4 million, representing a decrease of -5.4%. In the first half of the 2023/2024 fiscal year, the EBIT of the Grid Segment amounted to EUR 20.2 million, which is equivalent to a decline of 24.1%. This was primarily due to declining transported volumes on both the electricity and gas grids. Besides this, personnel costs rose in the reporting period, as did depreciation, amortisation and other expenses due to the investments made.

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 decreased by a total of 4.7% from 4,017 GWh to 3,827 GWh in the first half of the current fiscal year. Economic development and sustainable cost-saving measures due to the high electricity prices in the previous year caused a drop in sales volumes to customers at grid levels 4 to 7.

Grid operations were challenged by snow pressure in December 2023, with the electricity supply being affected by trees falling on power cables. 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.

Projects in the scope of the Electricity Grid Master Plan Upper Austria 2032 were pursued further. With respect to operations during the period under review, work continued on the expansion of the 380/110 kV Wagenham substation, while remaining work and testing and approval activities were carried out in the scope of “Alm- und Kremstal electricity supply” and “Pramtal Süd electricity supply” projects. The documentation for an environmental impact statement (EIS) for the “Mühlviertel Rohrbach – Langbruck electricity supply” project was authored. The EIS forms the basis for the actual negotiations in line with the Environmental Impact Assessment Act. In Steyr, work started on the general renovation of the 110 kV line from Steyr East to Steyr North. In the Grieskirchen area, building work on the Rottenbach substation started. Due to several appeals against the first-instance decision on the “Central Region Upper Austria” project, proceedings are pending before the Federal Administrative Court. While a hearing was held between 4 March 2024 and 7 March 2024, a decision is still outstanding.

In 2023, the number of grid connection requests for PV systems dropped by around one third compared to the previous year to approx. 22,000, although the average output of the systems increased. Further automation steps have enabled efficient processing of grid connection requests and reduced the average processing time to just a few working days. The situation remained challenging in the reporting period. Despite ongoing measures, the high demand for grid connections for PV systems led to bottlenecks in the electricity grid. Further measures to counteract these bottlenecks are being prepared or implemented.

Gas grid distribution volume to end customers

in GWh

In the reporting period, the gas grid distribution volume fell to 9,571 GWh and therefore decreased by 1.3% compared to the same period of the previous year (9,699 GWh). This decline in volumes was noticeable in both the industrial and household sectors and was influenced by savings and/or conversions relating to the energy type due to the very high gas prices, and to a comparatively mild winter.

In addition to maintenance measures, including the repairs of insulation defects in high-pressure gas pipelines, essential and extensive conversion work also started at several measuring and reduction stations as well as on the replacement construction of a high-pressure pipeline. Work for rerouting two high-pressure gas pipelines necessitated by third-party projects commenced during the reporting period.