Austria’s governing parties; the conservative Austrian People’s Party, the Social Democrats and the liberal NEOS have agreed on an emergency electricity price cap to protect households and businesses from a shock like the energy crisis of 2022.
Under the plan, the net electricity price would be frozen at 10 cents per kilowatt hour if the average household price rises above 16.5 cents. The support would be added directly to electricity bills, with no application required.
The mechanism would be activated only if two conditions were met. Wholesale prices for monthly electricity futures would have to remain above €165 per megawatt hour for three consecutive months, based on a six month average. At the same time, the average net price of the main electricity products offered by suppliers would have to exceed 16.5 cents per kilowatt hour, reported by the oe24.
Austria’s energy regulator, E-Control, would check the figures every month.
The government said the current household electricity price was about 14 cents per kilowatt-hour, while the wholesale comparison price stood at €109 per megawatt-hour. This means the proposed emergency cap would apply only during a severe price surge and could bring household bills below current market levels.
The scheme would be financed through additional profits collected from electricity producers under the existing energy crisis contribution.
From 2027, the government also plans to provide €250 million a year to support energy-intensive industries. The programme would include €175 million under the electricity cost compensation law and €75 million for a new industrial electricity price.
The existing support scheme, known as SAG+, would expand from 60 to 120 companies. A further 400 businesses could receive assistance covering up to half of their electricity use, with the supported price falling as low as 5 cents per kilowatt-hour.
Companies receiving more than €2 million in aid would face limits on job cuts. They would be allowed to reduce their workforce by no more than 10 per cent in a year, or risk receiving less support.
Economy Minister Wolfgang Hattmannsdorfer said affordable energy was essential to Austria’s industrial future. The government hopes to raise industry’s share of the economy from its current 16 per cent to 20 per cent.
The draft laws will now go through public review before lawmakers are expected to approve them later this year.
