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Austria’s largest energy supplier urgently needs government help
(EurActiv, 30 Aug 2022) Energy supplier Wien Energie is asking the federal government for a €6 billion bailout to prevent risking two million customers’ contracts, though it assures its supply is secure and no losses have to be compensated.
Due to increasing electricity prices, the required security deposits in energy trading increased on Friday. According to its own statements, Wien Energie no longer has sufficient financial resources to conclude transactions on the energy exchange.
With the help of the City of Vienna, it said, the company could raise the €1.75 billion needed to secure future supply contracts.
“For further expected financing requirements, however, the City of Vienna needs the help of the federal government,” a finance ministry statement said on Monday. This is because the financial leeway of Vienna, which has already taken on billions for the energy supplier, is exhausted.
Vienna’s city councillor for finance, Peter Hanke, put the need at €6 billion in a letter to the federal government.
If Wien Energie defaulted on its payment, it would be excluded from stock exchange trading, said the finance ministry.
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EurActiv, 30 Aug 2022: Austria’s largest energy supplier urgently needs government help
