Stranded costs

A report to the Austrian Economics Ministry on the costs of electricity market liberalization has deepened the row over how stranded costs will be absorbed by the country`s power industry.

The report states that stranded costs — past investments which will have no value in the deregulated market — are estimated to be over $735m (euro634m).

The report has also suggested that these costs should be absorbed by electricity consumers with an annual consumption of over 40 GWh.