!!!Elektrizitätswirtschaft

Electric Power Industry: The beginnings of the Austrian electricity 
industry date back to 1873, when a direct current generator supplied 
the Krupp factory in Berndorf (Lower Austria) with electric energy for 
the first time; in 1878 the first arc lamps lighted the rink of the 
Vienna Ice Skating Club, in 1883 the Suedbahngesellschaft railway 
company started the first 120-kW generator in Moedling, and the first 
public electricity supply company started supplying the town of 
Scheibbs (Lower Austria) in 1886. These pioneering achievements were 
followed by the rapid development of local power stations. In 1914 
there were 350 power plants in present Austrian territory (in line 
with natural conditions, steam power plants in the eastern part of the 
country and hydroelectric power plants in the West and South). In 
1959, there were more than 2,050 plants generating more than 
10 kW each and owned by about 1,100 companies; about 500 of these 
companies operating 1,000 plants with a capacity of 200 kW and 
over, supplied 99% of total electric energy. During World War I the 
country was faced with difficulties in supplying coal, which promoted 
the systematic development of water power, which was plentiful in 
Austria. After Austria lost its coal-fields in 1918, the construction 
of hydroelectric power-plants had to be promoted even faster. Between 
1918 and 1933 the total output of the hydraulic generation plants 
increased from 240 MW to 725 MW. Between 1920 and 1930 the 
first 110 kV power lines linked Styria and Upper Austria with Vienna. 
The power plants built between 1938 and 1945 were mainly designed to 
serve the south-north connection with Germany; however, most of them 
were destroyed during World War II.

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Until Austria's accession to the EU, the organisation of electricity 
supply in Austria was based on the 2%%sup nd/%  Nationalisation Act of 
1947. Under this Act the Austrian electricity industry was responsible 
for ensuring the supply of customers with sufficient electric energy 
at reasonable cost. Companies whose output was below 200 kW and 
all those in-plant generating stations whose annual delivery to 
outside consumers was below 100,000 kWh were not subject to  
nationalisation.

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The implementation of the Elektrizitaetswirt. und Organsiationsgesetz 
(EIWOG, Electronics Industry Organisation Act) in 1999 saw the 
beginning of the liberalisation of the electricity market in Austria 
as had been envisaged by the EU. This enabled an increasing number of 
customers (e.g. major industrial consumers) to access electricity from 
 other suppliers than those of the area where they are located; 
customers from abroad are thus also able to purchase electricity from 
Austria.

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Administration and management are largely the domain of the  
Verbundkonzern, which operates at supra-regional level. It distributes 
electric power all over the country and makes sure that production and 
demand are balanced. Each provincial company is responsible for 
regional power supply. These companies deliver power to their 
customers directly or supply public or privately owned electricity 
companies throughout the province and operate the network of power 
lines in their service area. Most of them also generate electric power 
in their own power-plants. These provincial companies are:  BEWAG 
(Burgenland Elektrizitaets-AG),  Energie AG Oberoesterreich,  EVN AG 
(Lower Austria),  KELAG (Kaernten Elektrizitaets-AG),  SAFE (Salzburg 
AG fuer Energiewirtschaft),  STEWEAG (Steirische Wasserkraft- und 
Elektrizitaets-AG),  TIWAG (Tiroler Wasserkraftwerke-AG),  VKW 
(Vorarlberger Kraftwerke-AG),  Wienstrom.

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In addition, there are 5 electricity companies which are owned and 
operated by provincial capitals (municipal power stations in Graz, 
Innsbruck, Klagenfurt, Linz and Salzburg); as well as over 100 local, 
co-operative and private power companies.

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Two thirds of Austria´s electric energy demand is covered by 
hydroelectric power plants, i.e. by run-of-river plants on 
Austria´s numerous rivers (in particular the River Danube;  
Donaukraft,  Ennskraft,  Draukraftwerke AG) and by the storage power 
stations in the Alpine regions ( Tauernkraftwerke AG, Draukraft etc.). 
The rest of the demand is covered by thermal power plants and by 
imports. The share of electric energy in total power consumption in 
Austria is 20 %. Between 1970 and 1998 the generation of current 
more than doubled, from 27,128 GWh to 56,599 GWh (1 GWh 
= 1 million kWh).

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Since the late 1980s research has gained increasing importance in the 
electricity industry. This development led in 1991 to the foundation 
of Energieforschungsgemeinschaft (EFG - Energy Research Group) within 
the Association of Austrian Power Plants. This group is committed to 
developing future-oriented energy technologies, promoting recyclable 
energy and innovative methods of more efficient energy use, and 
studying the environmental, social, legal and economic aspects of 
energy production and use. For this purpose, it co-operates with 
universities and research centres at national and international level.

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Its main fields of activity are  photovoltaics (solar energy),  wind 
energy and the use of  biomass. Various groups of experts are dealing 
with "Integrated Resource Planning", the aim being to develop 
efficient and environmentally benign forms of energy use.

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Until 1999, the Prices and Tariffs Act laid down the principles for 
fixing electricity tariffs in Austria. Usually the Verbundkonzern 
(Austria´s electricity association) submitted a proposal to the 
Federal Ministry of Economic Affairs, which subjected it to a 
preliminary scrutiny in which statutory interest groups participated. 
The proposal was then submitted to the Price Commission for study and 
the result promulgated by the Ministry of Economic Affairs as an 
administrative decision stipulating the price of electric power 
(usually a maximum price). The law of 1999 (EIWOG) constitutes the 
step toward liberalising electricity prices, which mainly affects the 
provincial supply companies. Further liberalisation measures have been 
planned for the near future.


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