Electricity is cheaper for everyone... A new law from the government!
In a move described as the largest in twenty years, the Austrian government has agreed to a comprehensive reform of the electricity system aimed at reducing costs for everyone, from households to businesses.
This decision came after energy prices sharply increased since the beginning of the Russian invasion of Ukraine in February 2022, and electricity prices remained far from their pre-crisis levels. These high costs have put significant pressure on Austrian households and the national economy.
Austrian Minister of Economy Wolfgang Hatzmannsdorfer announced a financial support of 150 million euros for the industry to cope with energy burdens, confirming the government's commitment to significantly reduce prices.
The new law, known as the "Electricity Management Act" (ELWG), is the largest reform package in decades. It aims to provide a modern, digital, and cost-efficient electricity system that ensures reasonable and competitive energy prices in the long term.
The new legislation includes a set of strict rules that ensure a direct reduction in electricity bills: ➤ When wholesale electricity prices drop, service providers will be legally obligated to pass this reduction on to customers. ➤ Introduction of a special social tariff for those at risk of poverty. ➤ Reducing network costs by improving the fairness of cost distribution, extending depreciation periods, and reducing peak consumption. The government has confirmed that this reform will make energy cheaper, fairer, and less bureaucratic for all residents of Austria.