Electricity and gas: Austria's households pay too much - here's how to save now!

Electricity and gas: Austria's households pay too much - here's how to save now!

More and more Austrians are not aware of how much they pay for electricity and gas and are therefore risking high costs. According to information from 5min.at, many households pay too much without realizing it. The savings potential when switching providers is considerable and can amount to up to 1,000 euros. In 2024, prices in the energy market took a positive turn. There were an increasing number of cheaper tariffs and more providers, even though the level of competition had not yet reached the pre-crisis level. Wolfgang Urbantschitsch from E-Control found that over 50% of those surveyed have never changed their supplier - specifically 52% for electricity and 54% for gas.

The figures show that over 20% of consumers have already switched several times, but this does not mean that most of them save optimally. A missed change of provider can cost many Austrians hundreds of euros. In the first year of a switch, it is not uncommon to save up to 450 euros on electricity and over 1,000 euros on gas. Despite the stabilization of prices on the wholesale market, where electricity cost around 10 cents per kWh and gas between 4 and 5 cents in 2024, there are many existing customers who are affected by long procurement contracts and the pricing power of their suppliers.

Change of provider and price controls

E-Control has launched a new pricing portal to help consumers check and compare their tariffs. Spot products could be even cheaper for flexible households and have enabled savings of up to 515 euros in recent years. Average prices in 2024 were around 16 cents per kWh for electricity and just under 7 cents per kWh for gas. However, consumers must be careful to remain active as prices for existing customers only fall slowly.

In addition, current figures show that 2023 was a record year for switching providers. Around six million households decided to change their electricity provider, an increase of 50 percent compared to the previous year. The Federal Cartel Office and the Federal Network Agency have pointed out in their annual monitoring report that consumers should use their market power by being willing to switch. This dynamic could also help maintain positive developments at price levels.

The current market situation

What is particularly noteworthy is the decline in energy prices compared to the previous year. The average electricity price for household customers as of April 1, 2024 was 41.59 cents per kWh, which was around eight percent below the previous year's level. The average gas price at that time was 12.5 cents per kWh, falling by more than 15 percent. However, despite these positive developments, prices are still higher than before the Russian war of aggression in Ukraine, which further differentiates the need to switch providers.

In summary, the potential for savings by switching providers is enormous. Every consumer should be aware of the current tariffs and seriously consider the possibility of switching in order not to incur unnecessarily high costs. E-Control provides active information and support via its price portal.