Wien Energie, the largest energy supplier, needs 6 billion euros, according to a statement from the Austrian Finance Ministry, because it is insolvent as collateral. – The Informant. 🇳🇱 #WeStandAsOne

Wien Energie, the largest energy supplier, needs 6 billion euros, according to a statement from the Austrian Finance Ministry, because it is insolvent as collateral.

Soaring gas prices: struggling German and Austrian energy giants

🔱Germany: COops of theater in Europe, deprived of Russian gas, the German supplier Uniper loses 12 billion in 6 months and risks bankruptcy.

🔱IBERDROLA: France: The Spanish Iberdrola terminates thousands of electricity contracts

🔱Several energy companies refuse to renew the “electricity/gas” contracts of small English companies. Some ask for £10,000 up front. The reason ? “They don’t think many bars or cafes are going to make it this year”

Bomb after the energy summit. 1.8 billion is missing: Wien-Energie insolvent.

  • There should be no press statement after the energy summit convened at the last minute at the chancellery.
  • But a bomb probably went off during the summit. Several newspapers reported that Wien Energie was insolvent and had requested state aid.

Published on 29.8.2022

Why does Vienna Energy need billions? The newspaper reports : Wien Energie, Austria’s biggest energy supplier, is insolvent and needs 1.8 billion euros to stay liquid, according to local media.

The company would not be able to post more than 1 billion euros in collateral next week due to soaring wholesale electricity prices. The federal government must intervene.

Wien Energie sinks into financial turmoil

Wien Energie itself experienced turbulence due to massive price increases. The group must deposit 1.8 billion euros and needs guarantees.

Austria was surprised to learn on Sunday morning that a crisis summit on energy prices was to take place the same day at the chancellery. The federal government has been pretty quiet on this lately. Chancellor Karl Nehammer (VP) had invited among others the head of Verbund Michael Strugl, the director of E-Control Wolfgang Urbantschitsch and the head of Wien Energie Michael Strebl.

On the political side, Finance Minister Magnus Brunner, Economy Minister Martin Kocher (both ÖVP), Energy Minister Leonore Gewessler (Greens) as well as the two club leaders of the government parties, August Wöginger and Sigrid Maurer, completed the round table.

Wien Energie needs guarantees

As “Heute” learned from the meeting on Sunday evening, Strebl had to broach an unpleasant subject: Wien Energie has slipped into turbulence due to the immense increase in the price of the electricity market. The subsidiary of the city of Vienna must deposit between 1.7 and 1.8 billion euros at the start of the week – and can no longer cope with it alone.

2 million customers, the federal state must help

Since electricity prices have increased massively, including in the wholesale trade (where Vienna has to buy energy), guarantees are no longer enough. The Federal State must now provide assistance, learns “Heute”. The city can no longer face this situation alone and must file a request for support. Nearly two million customers are under contract with Wien Energie – Finance Minister Magnus Brunner will therefore have to open an emergency parachute.

Wien Energie: “not bankrupt”.

On Sunday evening, Wien Energie clarified that it was “not insolvent/bankrupt”, but that due to the explosion in electricity prices across Europe, the “necessary guarantees had increased unexpectedly “. “Wien Energie & Wiener Stadtwerke are solid, economically healthy companies with excellent creditworthiness.”

Customers will pay more from Thursday

Already several weeks ago, Wien Energie announced that customers would face massive increases in electricity and gas prices from September 1. For a residential customer consuming 2,000 kWh of electricity per year, the price adjustment represents a monthly additional cost of approximately 36 euros. For gas, the additional cost will be approximately double.

The additional information that all existing Optima customers will automatically be transferred to the new ‘Optima relax’ rate has sparked heated debate. With action, this change should ultimately cost less, but experts have their doubts. “Today” looked at what this offer was worth.

Last minutes : Wien Energie needs up to 2 billion euros per day for the electricity trade.

Wien Energie needs up to 2 billion euros per day for electricity trading – .

The approximately six billion euros that Wien Energie needs from the federal government to make the necessary deposits for the transactions that have already taken place on the energy exchanges aroused great emotion on Monday. The financial adviser of the city of Vienna, Peter Hanke (SPÖ), now takes the floor and explains how it happened. We weren’t surprised, Friday’s “moon prices” were “totally unpredictable” and created by “driven by speculation and completely contrived”.

Specifically, Friday Leipzig EEX energy exchange, on which Germany and Austria trade electricity, price last Friday compared to the August 2021 electricity price by 1,095%, i.e. say that they have been multiplied by more than ten. The reason for this is the increase in the price of gas due to the war in Ukraine, which in turn increases the price of electricity.

That’s why there was suddenly a need for extra action over the weekend. “Security of supply has the highest priority. This means that Wien Energie must provide the guarantees required by the stock exchange. This currently amounts to up to 2 billion euros per day. The City of Vienna and the Wiener Stadtwerke have so far achieved this alone, with the explosion in stock prices at the end of last week we have now reached our limits,” Hanke said in a broadcast also sent to Trending. Topics.

“These funds are not wasted money”

On Friday, which turned out to be a “Catastrophe Trading Day”, the price of electricity rose from 700 to around 1000 euros, and then required an additional reaction: the city of Vienna had to contact the federal government. “The Wiener Stadtwerke have entered into negotiations with the Ministry of Finance to create a protective shield for the entire energy sector, but also additional credit lines and thus a network of several billion euros, so that there are no interventions in the security of supply of customers from Austria, but also from Vienna Energy, happens, ”says Hanke’s office. “These funds should be considered as a deposit and not as lost monies.”

The money would become Wien Energie are available in the form of a loan to guarantee the liquidity of the necessary energy business transactions in an emergency, the Wiener Stadtwerke Group would pay a market-based provision fee for this.

Why hasn’t the city of Vienna’s finance commission been informed yet? “The stabilization package for Wien Energie by the City of Vienna was decided on urgently and will of course be a topic at the next Finance Committee in September,” Hanke said. Why weren’t you at the height of the crisis at the Federal Chancellery? “The meeting with the federal government was always planned as a technical discussion, as an exchange between the federal government and the energy suppliers”.

With today’s Monday, it would be The city of Vienna is ready with a sum of several billion euros to put together a “stabilization package” for its municipal public services. As previously reported, the Austrian energy sector has already requested state aid due to electricity prices. The model should be Germany, where the German development bank KfW supports loans of up to 100 billion euros in the event of margin calls.–

Energy companies seek state aid due to skyrocketing electricity prices

Germany reacted much earlier

Hanke sees the reason why drastic measures are now needed because the federal government reacted too late. “The stabilization package was necessary because, unfortunately, the federal government did not take the measures in time that other states had already taken. Austria was either inactive here or withdrew to “watch the market”, according to Hanke. “In truth, what the German federal government understood in June has happened: the liquidity of energy companies must be ensured and even healthy companies may find it difficult to buy. Germany had already launched the hedging instrument in June.

In addition to a protective shield for national energy companies worth some 10 billion euros, Vienna’s financial council demands a cap on the price of electricity across Europe, temporary closure of stock exchanges and end of the order of merit at EU level. “The Federal Government must finally campaign vigorously for this decoupling at EU level and present the results. By capping the prices of gas-fired power plants and paying for them separately, electricity prices across Europe would see a massive drop,” says Hanke.

Wien Energie: the price of electricity at 1,000 euros caused the explosion of deposits

Source link


A to Z : Alien Races

Get your Ebook and learn everything about the alien races in the Univers.

GESARA • Redemption E-Book

Get your Ebook and learn everything about the redemption and Gesara.
Translate »