The implementation of the Energy Efficiency Act continues to drag on. A fine of seven million euros could be requested and imposed on Austria as early as April. This emerges from a letter from the Constitutional Service in the Federal Chancellery to the responsible Ministry of Climate Protection (BMK). The EU directive on which the law is based was passed in 2018, and implementation at national level would have been due by 2020.
The government’s bill was approved in the Council of Ministers on February 1, 2023, and the proposal must now pass the National Council. A two-thirds majority is required for this, so the governing parties ÖVP and Greens also need the approval of one of the opposition parties SPÖ or FPÖ.
Schedule not met
The Republic of Austria has sent the EU Commission the government proposal and, based on information from the Ministry of Climate Protection, a timetable for the further legislative process. This provided for a resolution to be passed in the competent economic committee in the period from February 14 to 23, 2023 and for the resolution to be passed in the plenary session of the National Council on March 1 or 2. The law would have come into force in March.
However, the submitted schedule was not adhered to. According to the constitutional service, this “considerably increases the risk of a decision on a lawsuit including an application for payment of a penalty”. The decision on this will be made at the next meeting of the responsible college of the European Commission, probably on 18/19. April 2023, fall.
According to this, a lump sum of seven million euros could be applied for in April and also imposed by the European Court of Justice (ECJ). In order to prevent this, the Energy Efficiency Act should therefore be passed “as quickly as possible”. According to the constitutional service, a resolution in the economic committee should be made before the next meeting of the responsible college of the European Commission on April 18th and 19th.
Agreement is in the air
The Ministry of Climate Protection is aware of the ongoing infringement proceedings and the possible penalties. The first draft for a new energy efficiency law had already been submitted to the ÖVP in January 2021, and a total of twelve different versions had been submitted before the Council of Ministers reached an agreement in February this year.
Meanwhile, the ÖVP parliamentary club said: “We are still in negotiations, it is currently dependent on the agreement with the SPÖ.” From the ÖVP’s point of view, the two-thirds majority must be secured before the law is passed in the committee.
