The modern state is an energy state: energy supply, and electricity in particular, forms the technical foundation of our civilization and is indispensable for the functioning of society, the economy, and government. Ensuring an adequate energy supply is regarded as a core responsibility of the state and is considered part of the provision of essential public services, even though the concept itself remains imprecise and open to interpretation.
While the constitution grants the legislature broad discretion, European Union law comprehensively regulates the organization of the energy sectors in order to safeguard competition, advance the energy transition, and ensure security of supply. Nevertheless, the state remains "under pressure": it must organize energy markets and deliver both security of supply and the energy transition, yet it encounters systemic, legal, and political obstacles in doing so. The stability requirements of network industries, the predominance of EU law, the independence of the regulatory authority, the federal allocation of powers, and the insulation of public enterprises from direct governmental control all contribute to a significant loss of steering capacity.
The new Austrian Electricity Industry Act reflects a trend toward greater state interventionism by imposing public-service obligations and policy objectives on all electricity companies. Even so, the state's ability to direct these enterprises remains limited, as multiple objectives must be pursued simultaneously and a variety of actors with differing interests and responsibilities are involved. As a result, the conceptual coherence of market design is often weakened by political compromise.