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Stranded costs

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 à‚– past investments which will have no value in the deregulated market à‚– 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.

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