The Austrian government has presented a draft for a new Electricity Industry Act (ElWG), which was submitted for public consultation on Friday. The bill, introduced at a press conference by Economy Minister Wolfgang Hattmannsdorfer (ÖVP), aims to comprehensively reform the Austrian electricity market. Key elements include the introduction of a social tariff, flexible grid fees, and a “peak capping” mechanism for solar power feed-in. Grid fees for injected photovoltaic (PV) electricity are also planned.

The reform’s primary goals are to reduce electricity costs, enhance supply security, and accelerate the energy transition, Hattmannsdorfer stated. Under the new rules, energy suppliers would be required to pass on price reductions to their customers within six months.

Social tariff for low-income households

A central provision is the introduction of a nationwide social tariff of 6 cents (net) per kilowatt hour for an annual consumption of up to 2,900 kWh. Around 250,000 households across Austria are expected to benefit from this measure. The cost of this support will be borne by the energy suppliers.

All households will also be subject to flexible, time- and load-based grid fees, as well as dynamic electricity contracts. Regulatory oversight by E-Control will be strengthened, and households will be allowed to share electricity locally — for example, within their neighborhood.

PV peak feed-in cap sparks debate

Controversy has already emerged around the proposed “peak capping” for solar electricity feed-in. In cases of impending grid overload, only up to 60 percent of a system’s output would be allowed into the grid — though the ministry emphasized this would only apply for a few minutes per day. Additionally, the law foresees introducing grid fees for electricity fed into the grid by PV systems.

As the bill requires a two-thirds majority in the National Council, the ruling parties will need support from either the FPÖ or the Greens.