Federalism and Energy

In terms of state policy, the most significant act of the young Republic in the first months of its existence was its united commitment to the undivided state. This was the fundamental prerequisite for all subsequent political decisions. Still, the interests in the electricity sector were more complex than to be reduced only the confrontation between the federal government and the states. Ideologies and group interests clashed violently on the issue of energy supply. A course had already been set in the winter of 1945/spring of 1946 for the later participation of the parties in terms of content and personnel. 

The decisions of the Council of Ministers of May 21, 1946, regarding the Energy Industry Nationalization Act were based on the premise that party negotiations on the question of overall nationalization should begin as soon as possible.

The National Council elections in the fall of 1949 and the resulting reorganization of political forces also brought about changes in energy policy. Three ministries were dissolved (electrification and energy management, national nutrition, and asset protection and economic planning). The ministries concerned with economic tasks were replaced by a newly created ministry, the Ministry of Transport and Nationalized Enterprises. In the end, the basis for the successful path of the state energy companies after 1945 was created precisely by this cooperation between the federal and state governments in energy policy. 

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