Austria is supporting calls for a European Union-wide solution to the problem of soaring electricity prices, partly due to Russia’s invasion of Ukraine. 

According to Austrian Chancellor Karl Nehammer, the “madness” of rising prices meant the “market will not regulate itself”.

The Chancellor was dubious at first of the notion to cap power prices, yet he has reconsidered due to prices showing no indications of a slowdown.

He added that his conservative-led coalition will attempt to get other EU nations on side.

“We must finally stop the madness that is taking place in energy markets. And that can only happen through a European solution,” Nehammer stated.

“Something has to happen at last. This market will not regulate itself in its current form. I call on all the EU 27 [member states] to stand together to stop this price explosion immediately.”

Austria is heavily reliant on Russian gas, especially in industry and heating, and before the war in Ukraine, acquired around 80% of its gas supply from Russia, The National reports.

However, a considerable amount of the country’s electricity comes from renewables, fuelling questions as to the market system where gas and power prices are closely connected.

“We cannot let [Russian President Vladimir] Putin determine the European electricity price every day,” Nehammer added.

European electricity costs rose to record highs last week as fears mount over a bitter winter, as the war in Ukraine and Moscow cutting gas deliveries for Europe impact economies throughout the continent.

In addition, in the UK, energy regulator Ofgem said it would hike the electricity and gas price cap from 1st October to a yearly average of £3,549, an 80% increase from the previous £1,971 cap.

Whereas in France, Finance Minister Bruno Le Maire stated: “The 4% cap will be maintained to the end of the year. There will be no catch-up of costs on the ceiling in 2023,” he said.