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    Austria : "Electricity price brake": OVP and Greens present draft law for electricity cost subsidy and network cost subsidy


    September 27, 2022 - TendersInfo - News

     

      Due to the rise in prices, the OVP and the Greens have presented a draft law entitled "Electricity price brake" for a limited electricity cost subsidy for households. On the one hand, up to 2,900 kWh of electricity per year for household customers should be supported by the federal government through an electricity cost subsidy. The subsidy is to be applied automatically via the electricity supplier from December 1, 2022 to June 30, 2024 and will take effect if the electricity price according to the household electricity supply contract exceeds the lower threshold of 10 cents/kWh. Any part of the price above this should be subsidized up to an upper threshold of 40 cents/kWh. Prices in excess of 40 cents/kWh should be supported at most with the difference between the two threshold values, i.e. with 30 cents/kWh.

      If the annual consumption is less than 2,900 kWh, the entitlement to the unused eligible amount of electricity lapses, since the electricity cost subsidy should be limited to the actual consumption. According to the template, an additional quota is provided for larger households in which more than three people are registered. On the other hand, low-income households are to receive a network cost subsidy in addition to the electricity cost subsidy in the period between January 1, 2023 and June 30, 2024. The award is based on the exemption from the GIS fee. The network cost subsidy is to be granted in the amount of 75% of the pure system usage fees to be charged by the network operator without other services. The annual amount of the grid cost subsidy is also limited to 200 and, like the electricity cost subsidy, is capped for shorter periods.

      The values ??of the electricity cost subsidy should also be able to be adjusted by regulation of the Minister of the Environment in agreement with the Minister of Finance if it can no longer be guaranteed that the cost burden on household customers for an affordable basic electricity quota will be reduced to a sufficient extent.

      According to the draft, around 2.73 billion is to be budgeted for the electricity cost subsidies and grid cost subsidies for 2023 and around 1.09 billion for 2024. According to the explanations, the additional quota mentioned for larger households must also be taken into account when the funds are made available. The electricity cost subsidy and network cost subsidy are to be evaluated after the end of the subsidy period, in particular with regard to whether the suppliers have made price adjustments that would not have taken place in an alternative scenario without the electricity cost subsidy.

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