Electricity prices are rising: worries about cost avalanche in Austria!

Electricity prices are rising: worries about cost avalanche in Austria!

The Austrian home of the electricity price brake is facing a critical wave of rising energy costs. From January 2025, electricity and gas prices will rise significantly, which will further exacerbate the already tense situation for many households. How vienna.at reported that the previous reduction in electricity fees under the turquoise-green government in 2022 resulted in savings of up to 500 euros per household per year. But the prospect of rising network costs is already causing unrest, and the managing director of Rewe Austria warns that the government cannot simply ignore the price increases: “People are already very unsettled,” he explained and called for lasting relief.

The electricity price brake and its consequences

The electricity price brake, originally introduced to help citizens under the pressure of the energy crisis, turned out to be a temporary solution. From July 2024, the subsidy will be reduced from 30 cents to a maximum of 15 cents per kilowatt hour. In addition, households that consume beyond the limited quota of 2,900 kWh must pay the applicable market price. finanz.at notes that the gradual phasing out of the current measures means high additional costs for many families. This could lead to desperate financial constraints, particularly for low-income households.

The NGOs Attac and Volkshilfe Österreich warn of dramatic social consequences and advocate that energy suppliers should pay proportionately for the increasing network usage fees. In her opinion, a change in the law is necessary to relieve those affected, while at the same time companies benefit from the high profits they made in 2023. Given these developments, the forecasts for the coming years seriously question the stable financial situation of many families.