Government presents the new electricity law: energy transition now!

Government presents the new electricity law: energy transition now!

On July 5, 2025, the Federal Government presented the new Electricity Industry Act (ELWG), which is considered the central component of the energy transition. The aim of this law is not only to relieve the power grids, but also a new distribution of network costs in order to meet the growing requirements through renewable energies. The Economic Minister Wolfgang Hattmannsdorfer (ÖVP) described the ELWG as the "largest electricity market reform in the past 20 years" and pointed out the need to update existing regulations in order to avoid a possible contractual infringement procedure from the EU Commission. In this context, the ELWG will replace the previous electricity management law (ELWOG) and will go into an assessment phase within the next four weeks before the National Council coordinates.

In the context of the new law, it is based on effective adjustments of production, consumption and the expansion of storage capacities in order to relieve the networks and dampen the expansion costs. Distribution network operators are obliged to provide network capacities published in order to bring more transparency to the power supply. A central element of the ELWG is the introduction of differentiated network charges that depend on the actual behavior of consumers, producers and storage. In particular, the liberation of double network charges for network -useful memory is a significant innovation.

Promotion of electricity market dynamics

Another focus of the law lies in the introduction of dynamic electricity tariffs and flexible network tariffs, which are intended to help consumers benefit from price changes. Energy supply companies are obliged to pass on price reductions in wholesale to end customers within six months. E-controls will also be equipped with extended powers in order to monitor the prices of wholesale and end customers more transparently in the future. Money value advantages should also be made available via a nationwide uniform social tariff of 6 cents net per kWh for households with annual consumption of up to 2900 kWh, from which an estimated a quarter million household should benefit.

The adjustments in the ELWG are necessary in view of the complexity of the energy supply. The most recent increase in electricity prices in 2022 due to high gas prices as a result of geopolitical tensions has also underlined the urgency of a reform. The European context shows that the EU is also working on the stabilization of the electricity market in order to better protect consumers from price fluctuations. This happens, among other things, through long -term contracts that guarantee minimum prices for electricity, and through contractual conditions that may not be changed one -sidedly.

Future view and challenges

The regulation of the electricity market, as intended in the new ELWG, could also help integrate innovative business models and energy communities better. This is intended to open the market for new players and promote the investment in renewable energies. However, a two -thirds majority is required for the final adoption of the law in the National Council, which means that the government parties are dependent on votes from the FPÖ or the Greens.

The reform of the electricity market is not only for the national energy transition, but is also part of the European strategy to promote sustainable energies. The ELWG thus forms an important step on the way to a more stable, more sustainable and affordable electricity market in Austria and beyond. The federal government and the institutions involved see the basis in these measures in order to continue to ensure both the security of supply as well as to be able to react flexibly through the volatile market development. However, the debate about the final design of the law could still be associated with challenges, not least due to the necessary majorities in parliament.

For more information on the specific measures and the context, contact the following articles: ÖA>, Kleine Zeitung and Tagesschau .