The government is introducing a new measure against inflation. The aim is to absorb the increase in electricity grid tariffs. 80 percent of this falls under the federal government. This saves an average household 80 euros. In total, the measures will cost up to 675 million euros.
As Minister of Climate Protection Leonore Gewessler (Greens) emphasized on Wednesday as a member of the Council of Ministers, this is an important support, especially at this time. So this is a necessary step. Businesses will also benefit from this. State Secretary Florian Tursky (ÖVP) emphasized that both companies and households will be hit hard by the enormous price increases.
A company with an annual consumption of 500,000 kilowatt hours would end up with almost 4,700 euros in additional costs. The federal government, however, withdraws 3150 euros.
Renewal will be accepted in January
The support instrument itself was created by the National Council in December. The extension decided today by the Council of Ministers will be accepted by the National Council in January.
“Do not tolerate a price hike on the back of the consumer”
However, Gewessler also held the suppliers responsible. What is not possible is to raise prices very quickly when rates fall, but then pass this on very slowly: “We will not tolerate price increases on the back of the consumer.” Control and the Federal Competition Authority have now started appropriate tests.
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.
