The government agrees to the electricity deal: fees will drop to 0.1 cents
The Austrian government is preparing to approve measures to reduce energy costs on Tuesday, aiming to make electricity more affordable and alleviate the financial burden on families amid high inflation.
The coalition of Austrian parties, including the Austrian People's Party (ÖVP), the Social Democratic Party (SPÖ), and the NEOS party, plans to allocate an additional 500 million euros next year to reduce energy costs. This funding will come from state-owned companies, including 200 million euros from Verbund energy company, 200 million euros from the Federal Real Estate Company (BIG), and another 100 million euros from the undistributed profits of the state-owned ÖBAG holding company.
To implement this relief, a legal amendment is needed. A bill has already been submitted to the National Council (the lower house of the Austrian Parliament), which will hold a special session on Tuesday to discuss the legislation.
Electricity tariffs, currently at 1.5 cents per kilowatt-hour, will be temporarily reduced to 0.82 cents in 2026. For private households, the reduction will be greater, with tariffs dropping to just 0.1 cents per kilowatt-hour starting January 1, 2026.
The finance committee will review the proposal on Monday afternoon before discussing it in a full public session. This measure is expected to ease energy bills for households and provide relief from rising costs, while supporting Austria's broader efforts to manage inflation and energy expenses.