Rising electricity costs in Vienna: Answers to your biggest questions

Rising electricity costs in Vienna: Answers to your biggest questions

The rising electricity prices are now raising questions that many Viennese employ. After the recent announcement with regard to the additional financial burdens that could come to consumers from 2025, many are unsure what this means for their future invoices. The causes of the price increases are complex, and while some of the news of higher electricity costs are caused, the connection with the termination of the electricity price brake becomes clear.

The electricity price brake, a state aid program that was introduced two years ago, expires at the end of the year. This measure had ensured that the state subsidized 15 cents per kilowatt hour at the costs, so that consumers only had to pay the own contribution of 10 cents. With the end of this support, a significant financial increase is expected. The costs, which are also reintroduced, include the electricity tax and funding costs. From January, the Viennese households must expect to increase network costs.

rising costs and their causes

Experts warn that average households have to expect additional costs of over 400 euros a year. This increase is made up of various factors: in addition to the termination of the electricity price brake, the electricity tax, the funding costs and of course the network costs also increase. In Vienna in particular, the network costs are increased by remarkable 30 percent, while Austrian households in other federal states such as Tyrol only have to expect an increase of 8 percent.

A reason for the higher costs is the conversion of the power grid. The Viennese networks invest vigorously- compared to other regions, a comprehensive expansion is seen here to replace the centralized power supply with water and gas power plants with renewable energies such as wind and sun. This leads to decentralization in the power grid, which in turn drives costs. Inflation also increases these developments.

Not only the conversions on the power grid cause unrest. There is also an interesting movement in the way households relate to their electricity: more and more people are creating their electricity themselves, for example by installing photovoltaic systems. This development could reduce pressure on network costs in the long term by using fewer consumers to use the infrastructure. In the meantime, however, the households have little to do against increasing network costs.

The mood among consumers

consumers can proactively oppose the rising electricity costs by compare their providers to possibly benefit from cheaper tariffs. Some providers are currently promoting fixed prices of 10.5 cents per kilowatt hour, which could be a possible saving. This exchange option could help mitigate the effects of the expiring electricity price brake.

With increasing network costs, a larger area of tension between the urban and rural regions is also visible. In certain rural areas, the power supply often runs through hydropower, which is less susceptible to price fluctuations and can therefore ensure lower prices. The result is different burdens for citizens, depending on their place of residence.

Another aspect that should not be forgotten is the current situation on the gas market. Although the wholesale prices have recently increased, a further increase in price, in particular by the decision of Gazprom to hire gas export, has so far been prevented. Experts emphasize that the market has reacted stable to date, which may relieve the households at least at short notice.

In total, a complex image of the current development at the energy market is shown. With the announced price increases in connection with the upcoming changes, it is important for many to find out more and, if necessary, rethink your own strategy for energy supply. The uncertainty that the topic brings is a clear signal for all consumers to plan forward.

Für weiterführende Informationen und detaillierte Erläuterungen zu den steigenden Stromkosten ist eine umfassende Analyse auf www.falter.at available.