Read news from:
Austria
SHARE
COPY LINK

ENERGY

When will households in Austria benefit from falling gas prices?

Wholesale gas prices have returned to lower levels but households aren’t seeing the benefits – yet. Here’s what you need to know.

Published: 4 January 2023 10:08 CET
When will households in Austria benefit from falling gas prices?
Wholesale gas prices are falling but Austrian households are not seeing the benefits yet. (Photo by Kwon Junho / Unsplash)

Despite prices on the global gas markets dropping, customers in Austria will have to wait longer to see a difference in their bills.

The current price for one megawatt hour of gas is €76 – the lowest value since just before the war in Ukraine broke out in February 2022. At the end of August 2022, the cost was €342, reports the Wiener Zeitung.

However, many Austrian households have recently been told their energy bills will increase in 2023, which means the lower prices will not be passed on to consumers for some time.

READ MORE: ‘There’s not enough gas in the world’: Can Europe keep the heating on this winter?

The reason for this – according to Wolfgang Urbantschitsch, Executive Director at E-Control – is because there is a “time lag” and energy providers are now charging prices in relation to the procurement costs from last summer.

The type of contract that consumers have will also determine how quickly they see a decrease in their energy bills. Those with a market-based tariff (or variable rate) will get a reduction in costs quicker, but they are also more exposed to price increases than households with a fixed-rate tariff.

Alexander Hoor, Wien Energie spokesman, told the Wiener Zeitung that they are currently in the process of adjusting tariffs for new customers, with possible savings of up to 30 percent.

And E-Control boss Urbantschitsch added: “Now a change of provider can be interesting again under certain circumstances.”

So while for many households in Austria there will not be an immediate impact, gas bills should start to decrease over the coming months.

READ ALSO: Warm weather hits Austria’s ski season as slopes left without snow

Why are wholesale gas prices dropping?

In the months leading up to the current winter season, the Austrian government worked overtime to ensure the country’s gas storage facilities were full amid fears of a gas shortage.

However, the autumn and winter has so far been fairly mild, which has reduced the country’s gas consumption.

Plus, as there is a similar situation in many other European countries, there is less demand for wholesale gas so the prices have dropped.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

COST OF LIVING

How to make sure you get Austria’s Klimabonus payout early this year

There are two ways of receiving Austria's Klimabonus payout: via wire transfer or by post and one of them is much faster than the other.

Published: 2 April 2024 11:15 CEST
How to make sure you get Austria's Klimabonus payout early this year

The Klimabonus (climate bonus) is a part of Austria’s eco-social tax reform, a set of measures to promote climate protection. One such action includes a tax on CO2 emissions, increasing fuel prices and affecting Austrian drivers. The annual Klimabonus aims to offset this expense. 

The concept is that individuals who rely more on public transportation and choose eco-friendly transportation options will have a more significant portion of the bonus remaining at the end of the month.

CO2 tax rising

Last year, Austrian residents received between €110 and €220 via the Klimabonus. The amount depended on the person’s primary residence and the local infrastructure. As explained above, those living in cities with more extensive public transport networks would receive less money, as they had more opportunities to make climate-conscious decisions. 

Now, the federal government said it would determine the amount “in early summer”, though Chancellor Karl Nehammer had already confirmed to Austrian media that the payout would take place for the third time in 2024. 

READ ALSO: What you can do if you still haven’t received Austria’s 2023 Klimabonus

Since the Klimabonus is linked to the CO2 taxes, which have seen a 38 percent increase, there have been calls for the payout to rise accordingly. That would make the payment between €150 and €300. 

Update your bank information

The Klimabonus is paid automatically to all eligible people. If your bank details are up to date with FinanzOnline, they will be wired directly to your account, making the process much easier and faster.

Those whose bank accounts are not stated on the government website still receive the payout as a voucher sent via secure letter. This means you must be at home to sign for it. You will then have to exchange the voucher for cash and, in some cases, might have to wait even weeks to receive the letter—after the government makes the wires.

All you need to do is have your bank details on FinanzOnline to receive your payout sooner. 

Once logged in to the website, you can change your personal information, including bank data, as a private person by clicking the “persönlichen Daten” link on the homepage. You can find that under “Weitere Services – Anträge – Grunddaten”, it is registered as a freelancer or company.

It’s worth pointing out that even though you need an IBAN, your bank account does not necessarily need to be an Austrian account. You can receive the payment straight in your SEPA bank account – including online banks such as N26 and Wise. 

SHOW COMMENTS