Energy revolution: Electricity prices are falling in Austria thanks to new reforms!

Energy revolution: Electricity prices are falling in Austria thanks to new reforms!

Österreich - On June 9, 2025, the Austrian Federal Government put an important energy reform into force with the introduction of the new Electricity Economics Act (ELWG). This reform has been considered the largest of its kind in 20 years and builds on current developments in the energy sector. The main goal of this reform is to create more fairness in the energy market, reduce bureaucracy and reduce electricity prices for households and companies in the long term. oe24.at reports that the reform forms a basis for a digital, cost-effective electricity system.

The essential innovations of the ELWG include the mandatory transfer of price reductions in the event of falling wholesale prices to end scour: inside. This is intended to help consumers noticeably benefit from the market developments. In addition, a social tariff for households at risk of poverty is introduced to alleviate social injustices. The Federal Government also relies on a reduction in network costs through fairer distribution and longer depreciation, as well as a more efficient expansion of the power grid, which is to be addressed strategically.

relief and new framework conditions

As part of the reform, relief for consumers should also be created, for example by simpler self -production, distribution and trading of electricity via energy communities or direct contracts. In addition, companies receive new framework conditions, including fixed long -term contracts and larger energy communities that should contribute to reducing electricity prices. Chancellor Christian Stocker emphasizes the need for a fundamental reform of the energy sector to modernize the energy market. Meanwhile, Vice Chancellor Andreas Babler emphasizes how important the relief of the population is in the current situation, which is supported by measures such as a rental price stop. Design of the law to amend energy management law was already passed on November 13, 2024.

One of the central measures of the reform is the inclusion of security strategies for electricity suppliers to prevent significant price increases. The government is thus responding to the challenges from the latest electricity price crisis. In addition, consumers should be able to actively participate in the energy market, which is promoted by new regulations for "Energy Sharing". Another step towards transparency is the digitization of the network connection process.

context of energy market development

In 2023, the German Energy Market experienced stabilization after geopolitical tensions and rapidly increasing energy prices. Over 50% of electricity consumption were first covered by renewable energies, which led to a significant reduction in electricity prices at wholesale level. The generation of electricity dropped by 9.2% in the same period and the decommissioning of the last three nuclear power plants led to a drastic decline in conventional electricity generation. Techzeitgeist.de Network stability remains a challenge, but consumers already feel positive effects through falling electricity and gas prices.

The reform of the Electricity Economic Act is part of a more comprehensive strategy for energy transition, which also takes into account the need for a safe and sustainable electricity system. With the legal anchoring of a crisis mechanism for the suspension of massive price jumps in times of crisis, the government would like to ensure that electricity prices remain stable even in difficult time phases. The targeted energy transition also goes hand in hand with ambitious goals by 2030, in which renewable energies will play a key role.