Energy Bills to Rise Sharply in 2025

Energy Bills to Rise Sharply in 2025

Image: APA/THEMENBILD/GEORG HOCHMUTH

 

Austrian households are set to face a sharp rise in energy costs from 1 January 2025, with grid fees for electricity and gas increasing significantly, the energy regulator E-Control announced on Monday.

Electricity network charges will go up by an average of 23.1%, while gas network fees are set to rise by 16.6%, according to E-Control.

These changes mean annual household energy bills are likely to increase by several hundred euros, depending on the region and level of usage.

What’s Behind the Increase?

The rise in grid fees is partly due to a fall in energy consumption, which has left fewer energy units to cover growing infrastructure costs. For electricity, this is largely down to the rapid adoption of solar panels, which reduces reliance on the grid. For gas, the shift towards alternative heating systems, higher pipeline charges and less frequent use of gas-fired power plants are major factors.

This has led to higher grid costs being spread across a smaller number of energy units.

Impact of Political Delays

Efforts to make grid charges fairer have been stalled by political setbacks. Plans to overhaul the electricity market with a new Electricity Industry Act (ElWG) have failed to move forward, leaving grid fees calculated using outdated methods.

At present, household energy use is not assessed for its impact on the grid. This means all households pay the same, regardless of how much strain they place on the system. For example, homes with heat pumps and electric vehicles, which can draw more than 11 kilowatts, are charged the same as households using only a few kilowatts for appliances like ovens and dishwashers.

E-Control’s chairman, Wolfgang Urbantschitsch, has urged Austria’s next government to prioritise reform. “The ElWG is urgently needed to make grid charges fairer and better reflect actual usage,” he said.

Levies Returning to Pre-Crisis Levels

Adding further pressure on household budgets, energy levies that were cut during the 2022 energy crisis will return to full rates in 2025. At the same time, the electricity price cap, introduced to protect consumers from soaring costs, is due to expire at the end of this year.

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