Wien Energie, the city-owned energy provider based in Vienna, has announced plans to implement more substantial price reductions in July.

The revised volume of reductions is now expected to reach an impressive total of 340 million euros, surpassing the initially announced figure of 140 million euros. A spokesperson representing the city-owned energy supplier has confirmed these reports, substantiating their statements to the APA news agency.

The “Kronen Zeitung” published these developments on Sunday. According to the reports, district heating, electricity, and gas service, customers will be eligible for these reductions. Notably, instead of issuing vouchers or cash payments, Wien Energie will directly reduce the prices for its services. The initiative aims to provide financial relief and ease the burden of energy costs on consumers.

These price reductions’ benefits extend to new and existing customers, including corporate entities. A media report suggests that from July 1, list prices will be reduced by 25 to 52 percent, depending on the terms of the customer’s contract commitment. However, the spokesperson for Wien Energie still needs to confirm the specific modalities of these reductions.

Before the proposed price reductions can be implemented, the approval of the Energieallianz is required. The Energieallianz, a joint energy sales and trading company comprising Burgenland Energie, EVN, and Wien Energie, must endorse the plan. This collaborative effort seeks to ensure the coordination and consensus of major regional energy providers.

The announcement of these price reductions follows the unveiling an energy assistance package worth 140 million euros in April. At the time of the initial announcement, it was stated that 80 million euros would be allocated to provide electricity and gas customers with free energy days and rebates throughout the summer. An additional 50 million euros were earmarked for retroactive district heating rebates, while ten million euros were set aside to support individuals facing social hardships.

The response to Wien Energie’s initiative has garnered mixed reactions from political circles in Vienna. The Viennese branch of the ÖVP, while acknowledging the significance of the step taken, has criticized the timing, deeming it overdue. The People’s Party has expressed a demand for reductions in advance payments and increased customer service personnel. Similarly, the Vienna branch of the FPÖ has called for immediate and permanent price reductions, accompanied by an energy price guarantee. These political entities advocate for more comprehensive measures to address energy costs and safeguard consumer welfare.