Electricity prices are falling: New law starts assessment period today!

Electricity prices are falling: New law starts assessment period today!

Österreich - Today marks the beginning of a decisive phase for Austrian energy policy: The assessment period for the new Electricity Industry Act (ELWG) starts, as Oekonews reported. This law has been the largest reform of the electricity market for 20 years and aims to reduce electricity prices, promote the stability of the networks and accelerate the energy transition. The Ministers of Economic and Energy Wolfgang Hattmannsdorfer emphasizes that this legislative initiative should be relieved of households and businesses, while security of supply is guaranteed.

The ELWG is intended to reduce bureaucracy and facilitate investments in the energy sector. Energy State Secretary Elisabeth Zehetner emphasizes that the law lays the foundation for a modern electricity system. The central measures include the introduction of a crisis mechanism to combat price plosions and a new social tariff for low -income households in order to counteract energy poverty. The assessment period will take four weeks.

focus and measures

The main focus of the law is diverse. In addition to reducing electricity costs through a low-price guarantee, the introduction of flexible network-charged and dynamic power contracts are planned. For a clear price structure, invoices are simplified and the tariff change rate is increased. In addition, the peer-to-peer current transfer is legally anchored, which increases consumer autonomy.

To ensure energy supply, financial incentives for systemic behavior are introduced. Technical measures to limit electricity tips should prevent network overload. A focus is also on transparency in energy management as well as predictable network connections and network development plans. Future requirements for the network should be planned in order to drive the energy transition quickly.

Reform of the European electricity market

In the context of this national reform, the European Council's reform proposal for the European electricity market, which has been discussed since autumn 2021 due to high energy prices. According to Energie.de aims to strengthen and promote consumer protection, climate neutrality To ensure energy sovereignty. A common European power internal market is to be created, and the Ordinance of the EU Commission of March 14, 2023 includes numerous changes to improve the market structure.

It is particularly important to enable free trade in electricity and the reduction of trade barriers. The introduction of an independent regulatory authority for market surveillance is planned. A flexible power grid is considered essential to integrate the higher proportion of renewable energies. Investments in the network infrastructure and storage technologies are therefore essential to ensure security in the long term.

Overall, these initiatives represent an integrative approach that addresses both national and European measures to modernize and sustainability of the energy system. The adoption of the ELWG until summer 2025 is a central step in the implementation of these goals, the Federal Ministry of Economics, Transport and Innovation reports at bmwet.gv.at