Beginning for Electricity Price Brake in Austria
Without further application, the electricity price brake comes into effect for every household with an existing electricity contract. The electricity cost brake is intended to counteract the current price increases for electricity. This will be visible on the electricity bill. According to the government, households can save an average of 500 euros per year.
Together with the energy industry, the aim is to cushion electricity costs directly "where they become a burden for customers, namely on the electricity bill," said Finance Minister Magnus Brunner. / Picture: © BMF/Harry Connolly
As Vindobona.org reported in September the Austrian government set its sights on an electricity price brake. "No one in Austria should not be able to afford their basic electricity needs," Chancellor Karl Nehammer said after the Council of Ministers meeting at the time.
The electricity cost brake will take effect directly on electricity bills beginning December 1, 2022, and will remain in effect until June 30, 2024.
The basic model of the electricity price brake is aimed at a household with up to three people. The Ministry of Finance is working on an additional model for households with more than three people.
The electricity cost brake benefits natural persons who have a valid electricity supply contract for a household metering point. These persons automatically receive the electricity cost brake from their electricity supplier. The electricity cost brake reduces the costs of the next bill and future installment payments.
A basic consumption of a maximum of 2,900-kilowatt hours (kWh) per household is subsidized. According to the government, this is about 80 percent of average consumption. The electricity price brake takes effect from ten cents per kWh; as an upper threshold, the government drew the line at 40 cents per kWh. This means that for 40 cents per kilowatt hour, one receives 30 cents from the government. At 45 cents, it is also 30 cents.
Consumption over the assumed base consumption is charged at the market rate. Both primary and secondary residences are subsidized. The government is making four billion euros available for this purpose, said Finance Minister Magnus Brunner (ÖVP).
Since multi-person households also face higher electricity costs, the possibility of additional relief is created, which takes into account household sizes, the government explained.
Households at whose address more than three people are registered in the Central Register of Residents (ZMR) will receive an additional quota. Each additional person is supported with a quota of 350 kW/h at 30 cents. This corresponds to an additional relief of more than 100 euros per person and year. The model is currently being finalized at the Ministry of Finance and the relief will reach households before the end of next spring. Processing is to be largely automatic.