Austria plans energy reform: cheaper electricity for everyone!

Austria plans energy reform: cheaper electricity for everyone!

Österreich, Land - The Austrian government announced a comprehensive reform of the energy sector on June 9, 2025, which has been referred to as the "largest energy reform for two decades". The aim of this initiative is to lower electricity prices for consumers and thus increase the general quality of life. The reason for the reform are the considerable price increases that have occurred since the beginning of 2025. These developments are particularly due to the end of the nationwide electricity price brake and increasing network costs.

The political agreement within the government coalition includes first steps to relieve both companies and private households. Chancellor Christian Stocker (ÖVP) emphasizes that "political interventions in market failure" are necessary. Vice Chancellor Andreas Babler (SPÖ) adds that a reduction in prices in the energy sector should contribute to the stabilization of the overall economy. Interior Minister Beate Meinl-Reisinger (NEOS) emphasizes that the reforms should serve to free people and businesses from economic stress.

planned measures of energy reform

A central element of the reform is a new electricity management law that promises more fairness in the energy market and simplified access to cheap electricity. The planned regulations include:

• wholesale prices must be passed on to the end customers.
• Introduction of a special social tariff for people at risk of poverty.
• reduction of network costs through a fairer distribution and longer depreciation.
• planned investments in the infrastructure of the power grid.
• Increasing production options for households and companies for independent electricity generation.
• Improvements of the framework conditions for companies in relation to long -term contracts and energy communities.
• Introduction of a legal crisis mechanism to prevent exorbitant price increases in crisis situations.
• Efficiency increases in approval procedures.

In addition to the reform, a discussion about a new electricity price compensation for industry is conducted, which is to be implemented from 2025 and until 2026. This compensation is intended to relieve the energy-intensive businesses of indirect CO2 costs in the electricity price, which have risen sharply in recent years due to increasing CO2 prices.

electricity price compensation in Europe

The need for this reform also becomes clear in an international context. In many European countries, including Germany, France and the Czech Republic, measures to reduce price in the energy crisis have already been introduced. This often happened in the form of state subsidies. In Austria, for example, the electricity levy was reduced and a price limit for certain load profiles was determined by June 2024 to support households. However, comparisons with other countries show that electricity prices on the wholesale market in Austria are almost 10% higher than in Germany, which is due to the separation of the electricity price zones.

WKOÖ President Doris Hummer has required the immediate and permanent implementation of the electricity price compensation by 2030 to ensure Austria's competitiveness and to create advantages for the electrification of processes and climate protection.

The Austrian reform could therefore be pioneering for the future of the energy price in the country and help to strengthen the competitiveness of the domestic economy, while at the same time reducing stress for citizens.

5min.at reports that ...
wko informs about the developments in the electricity price compensation.
Strom-report gives an overview of electricity prices in Europe.