The Energy Regulation and Markets Review - Stikeman Elliott

Chapter 2
Austria
Bernd Rajal and Guenther Grassl 1
I
OVERVIEW
Starting from 1 October 2001, the Austrian electricity market was fully liberalised on the
basis of the European electricity directives and regulations. Whereas the tariffs for electricity
are not regulated, fixed charges apply to the transmission and distribution of electricity. The
charges are provided for in the System Charges Ordinance (SNT-VO), which is adopted
by the Austrian Energy Regulator (E-Control). The legislative competence to regulate
electricity is divided between the federal state legislature and the federal states. The federal
legislature has the authority to enact regulations on common principles of electricity
concerns whereas the federal states have the authority to regulate electricity concerns
in more detail on the basis of the federal law. The Federal Electricity Management and
Organisation Act 2010 (‘the ElWOG’) entered into force on 31 December 2011, which
transposes the EU Directive 2009/72/EC (‘the RED’) and Regulation (EC) No. 714/2009.
Currently, the vertically integrated energy companies carry out reorganisation measures
in order to comply with the new unbundling requirements (provided in the RED and
ElWOG).
The Austrian natural gas market has been fully liberalised since 1 October 2002.
The federal legislature has the authority to enact gas regulations relating to public gas
supply and gas transmission or distribution. The Gas Management Act 2011 (‘GWG
2011’) provides the regulatory framework for the national gas market. It further
contains regulations on the construction and operation of gas pipelines. Exploration and
production of natural gas is regulated under the Natural Resources Act.
The Austrian gas market currently faces material changes due to the implementation
of an entry and exit system, and a virtual gas trading point is to be established by 2013.
These measures may increase the liquidity of the Austrian gas market; however, existing
1 Bernd Rajal is a partner and Guenther Grassl is an associate at Schoenherr Attorneys at Law.
23