The Austrian government wants to reduce the burden of high electricity prices on households by covering 80% of network tariffs, while authorities look to tackle price gouging by utility companies.
As gas inventories remain high at above 85% and mild weather conditions continue, energy prices in Austria are receding like much in the rest of Europe. Yet, consumers and businesses continue to feel the strain of prices that are more than double before 2022.
“Energy prices have fallen significantly in recent weeks, but they remain at a high level,” said Energy Minister Leonore Gewessler on Wednesday.
“At the same time, the distortions on the electricity markets have led to a significant increase in electricity grid fees this year,” she added.
Grid fees are a large part of electricity bills and pay for the necessary infrastructure and measures to keep the grid running. Some 80% of those will be paid for by the government.
Initially, €475 million was earmarked for such support until mid-2024. Vienna is looking to top up the fund with another €200 million. An average household could expect savings of around €80, Gewessler noted.
The support will apply to businesses as well. Austria’s chamber of commerce (WKÖ) called it “an important and necessary relief measure.” Industrial industry association (IV) noted similar appreciation.
Meanwhile, Austria’s grid regulator E-Control and the competition authority BWB were tasked with investigating potential price gouging. “We do not tolerate price gouging on the backs of consumers,” Gewessler insisted.
The two authorities will launch a joint task force that will operate until mid-2024. The first results are expected in the first quarter of 2023.
(Nikolaus J. Kurmayer | EURACTIV.de)
Source: euractiv.com
