Frequent questions and answers regarding German-Austrian electricity trade

Frequent questions and answers regarding German-Austrian electricity trade

What will happen to existing contracts (supply contracts, wholesale contracts, etc.)?

The effects of the restrictions imposed on electricity trade from 2018 will depend on the respective contract. Contracts can of course be amended based on mutual agreement of both parties. It is up to the parties to the contract to negotiate such amendments.

Will the cooperation with regard to balancing energy be continued?

There will be no changes to Germany’s and Austria’s cooperation with regard to balancing energy.

What costs are incurred when tapping capacity of reserve power plants?

German transmission system operators can access capacities of Austrian power plants via the transmission system operator APG. Costs associated with the availability of the required power plants are borne by Austria; costs for the use are borne by the German transmission system operator requiring electricity.

 

What are concrete effects on electricity trading?

Considering the high capacity of 4.9 gigawatts (which will significantly increase following the construction of the St. Peter-Isar power line), trading activities are only curbed to a small degree, safeguarding the market’s liquidity. Current estimates suggest that under the current conditions the impact on wholesale prices will be less than 5 percent.

 

When will the restrictions on electricity trading take effect?

Minor restrictions on the currently unlimited trade activities on the German-Austrian electricity market will take effect as of 1 October 2018. Yet a cross-border exchange in electricity will remain possible to a large extent: up to 4.9 gigawatts of electricity can be traded. This is equivalent to about half of Austrian consumption in peak periods.

A test phase will commence on 1 July 2018 at the latest. From this date, electricity rade will be curbed in a trial run, but limitations on trading activities will not yet apply.