As of today, Thursday, the price brake will take effect: customers only have to pay 10 cents for 2,900 kilowatt hours per year. However, heating with gas remains expensive. Finance Minister Magnus Brunner (ÖVP) also does not believe in a national cap.
Important: The help is provided without application. Customers will see them on their partial invoice under ‘Electricity subsidy’ from Thursday. The state allocates a maximum of 30 cents per kWh (a maximum of 2900 kWh per year per household metering point), so that everyone would have to pay a maximum of 10 cents net. The energy suppliers are optimistic about the processing, said Verbund boss Strugl. In the event that nothing is deducted, one should remain calm and wait. Climate minister Leonore Gewessler (Greens) insists that no one falls for the aid.
Sales tax applies
Incidentally, everything above 40 cents must be paid by the end customer. In addition, sales tax applies to the entire amount. The government is also working on a solution for large households. “If there are more than three people, the subsidized quota per person must increase by 350 kWh,” said Finance Minister Brunner. This only applies to main residences. In addition, everyone with a GIS exemption will be reimbursed 75 percent of the network costs.
A quarter heats with gas
In addition to electricity, gas in particular has become enormously more expensive. Our German neighbors have therefore already decided on a gas price brake. However, Minister of Finance Brunner thinks little of this: “Only 25 percent heat with gas. That would mean nothing at all for many people. And not everything that sounds good makes sense.” He continues to support a European, not a national, solution. Criticism comes from the Labor Chamber, which absolutely wants to apply the brakes to space heating.
Good to know: Frequently asked questions about the electricity price brake are answered online.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
