SHARE
COPY LINK

VIENNA

Vienna to handout €200 payments to counter rising energy costs

Austria's capital has unveiled a plan including €200 one-off payments to fight rising energy prices after thousands of households were set to see bills double.

Vienna to handout €200 payments to counter rising energy costs
Vienna city Mayor Michael Ludwig (SPÖ). (Copyright: C.Jobst/PID)

Vienna has announced an extensive package with one-off payments of €200 and structural measures that will benefit more than one million residents in the Austrian capital, Mayor Michael Ludwig (SPÖ) said during a press conference this Tuesday.

The announcement comes as energy bills rise, the cost of living increases, and the state-run utility company Wien Energie confirmed a 92 percent increase in bills for around 440,000 households in Vienna.

Wien Energie’s price increase still needs to be evaluated and approved by city authorities.

Vienna’s announcement also comes as the federal government unveiled a €6 billion set of measures to fight the rising cost of living, as reported.

READ ALSO: UPDATED: Why some households in Vienna are set for a gas price hike

Together with executive city councillor Peter Hanke (SPÖ), Ludwig announced the package and said that specific households could receive up to €1,000 in relief measures.

Energy bonus 2022

According to the city officials, the first phase of the relief package comes by the end of June, or early July, when about 650,000 households in Vienna will receive the €200 payment.

“In theory, a person could receive up to €1,000 in several tranches, and further measures or inflation packages cannot be ruled out. We want to cushion energy increases to households”, Ludwig said.

He said the first payment would be made to eligible households, which include about two-thirds of the Viennese homes. Residents will receive a mailed letter with a QR code to apply for the payment.

There is an income limit, and only Viennese residents with an annual gross income of a maximum of €40,000 for single-person households or €100,000 for multi-person families are entitled.

The mayor didn’t give further details on how additional payment “tranches” would work.

Further measures to control energy increases

Ludwig and Hanke mentioned other measures set aside to fight the effects of rising prices and ensure that the population is protected.

The mayor announced the city would set up a “Fairness Commission”. Ludwig said that the commission would “monitor international markets and ensure that lower purchase prices will be passed on to customers promptly”.

READ ALSO: Austria unveils €6 billion package to fight rising cost of living

Additionally, state utility company Wien Energie will not cut off electricity and gas supplies to defaulting consumers during the winter months of December 2022 to February 2023.

Consumers of the company will be allowed to repay debt in up to 18 monthly instalments, and a loyalty program for clients of Wiener Stadtwerke, the holding that owns Wien Energy and transport company Wiener Linien, will be created.

The City of Vienna, the sole owner of Wiener Stadtwerke, will waive its dividend payments to the city budget in 2022 and 2023. “Every euro generated should be used for investments in the energy transition and the best possible customer price”, Ludwig said.

Member comments

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

VIENNA

How do I lower my rent if I pay too much in Vienna?

If you live in an older building, a so called "Altbau", the price per square meter is regulated. If you are paying too much rent, there are ways to lower it and claim your money back.

How do I lower my rent if I pay too much in Vienna?

Vienna is known for offering its residents affordable rents. However, if you live in one of the older apartments in Vienna (Altbau), you should know that there is a limit on how much rent can be charged per square meter.

Some landlords rent out their flats more expensively than they are actually allowed to. The City of Vienna’s rent calculator can help you determine if you are paying too much.

If you believe that your rent is too high, there are three different options on how to bring it down and also get the money back from the time when you paid too much.

Hire a company to take on your case

In Vienna, several companies, known as Prozessfinanzierer in German, will take on your case individually and try to reduce your rent. This could not only result in a lower rent for the future but also in you receiving a refund for the period you overpaid. It is even possible to pursue this after you leave your apartment. 

However, the City of Vienna has warned against using these services. If you are successful, the companies could claim a great portion of the refunded money, ranging from 30 percent to even half. MeinBezirk also reported occasions when employees of these companies have gone door to door, pretending to be city officials to secure contracts with excessively high commission payments.

Tenant protection organisations argue, as cited in Der Standard, that the companies may prioritise their profits over the best interests of tenants, negatively impacting tenant-landlord relationships.

However, these companies typically operate on a ‘no win-no fee’ basis, which means that you do not have to pay anything if the reduction attempt is unsuccessful. 

READ MORE: Gemeindebau: How do you qualify for a social housing flat in Vienna?

Get help from the Mietervereinigung

Another option is to get help from the Mietervereinigung. This is a tenants’ association that supports tenants’ rights and interests. A yearly membership costs around €69 in Vienna (it also operates in Austria’s other federal states).

Once you are a member, you can go to them for help. They will assist you with claiming back your rent if you have been overpaying, and can also help with rental problems such as mould, contracts, painting, disputes with landlords and housing standards. 

The association also offer education and information to help you understand your rights and responsibilities under landlord-tenant laws. This includes workshops and seminars about topics related to housing rights and regulations.

The association is also known for publishing guides, brochures, and online resources with practical tips for dealing with common rental issues.

The Mietervereinigung offers services and guidance for its members over the phone, online or through meetings in person. 

Altbau in Alsegrund, district 9 in Vienna. Photo by Melloo on Unsplash

Do it yourself

The third option you have as a tenant is to go to the arbitration board yourself.

The arbitration board is an independent entity established to help resolve conflicts between tenants and landlords outside of the court system. However, this can sometimes be complicated.

You often need certain legal expertise to be successful and the process can be complex and time consuming.

READ NEXT: How does urban gardening work in Vienna?

SHOW COMMENTS