Salzburg labour chamber calls for pellet price cap

The Salzburg Chamber of Labour is calling for a price cap on heating pellets after prices rose by a third in one year, ORF reported. The chamber predicts that various geopolitical conflicts could drive prices even higher.

The increase has been greater than for heating oil, which has also become significantly more expensive during the Iran war. A tonne of pellets currently costs more than 400 euros.

The pellet industry says prices should be assessed alongside heating performance. Pro Pellets Austria, the Austrian pellet industry association, says a pellet heating system costs about eight cents per kilowatt-hour, compared with around 16 cents for oil and 17 cents for gas. The industry maintains that pellets remain the cheapest energy source.

Peter Eder, president of the Chamber of Labour and leader of the Social Democratic Party in Salzburg, rejects the industry’s claim that scarce raw materials are driving prices higher. “There are no understandable reasons for this enormous price increase. Domestic raw materials remain available in sufficient quantities,” Eder said, accusing suppliers of using their market power to maximise profits at consumers’ expense.

Eder is also calling on the federal government to impose export controls. He says suppliers export quantities that are not demanded in Austria in October, leaving fewer pellets on the domestic market. A long and cold winter could then lead to further price increases, he warned.