After the Tyrolean state energy company Tiwag had not yet increased prices for existing customers, customers will have to dress warmly from the summer. The price of electricity for a standard household will rise by about 28 percent and that of gas by as much as 100 percent.
CEO Erich Entstrasser emphasized to journalists on Friday that Tiwag could not lower prices for legal reasons and did not see the end of the gas era coming. From June, Tiwag customers in a standard household with a consumption of 3500 kWh will pay about 18 euros more per month, taking into account the electricity price brake and the announced reduction in network tariffs.
80 euros more for gas customers
For gas customers with an average consumption of 10,000 kWh, this will be about 80 euros more from July, district heating customers can expect an increase of about 45 euros (about 42 to 55 percent). The prices for new customers will not be increased this year, but we will look at how these customers can be included in the group of existing customers.
Entstrasser justified the price increases by saying that the company must now follow suit due to last year’s high purchase prices.
Price increase “no alternative”
Tiwag cannot simply lower prices because as a public company it is subject to the Stock Corporation Act and competition. With 3,000 GWh, the Tiwag produces half of Tyrol’s electricity consumption, but most of it in summer when little energy is needed. In order to also meet demand in winter, we purchase on the international market. Although this always happens a year and a half in advance to smooth out price peaks, Entstrasser saw no alternative to the price increases due to the extremely high prices in the previous year.
Tiwag makes “no extraordinary profits”
“It’s not like we can just say, now we’re going to make cheap prices,” said the Tiwag boss. But since Tiwag’s prices will be “always competitive,” they could drop again. However, if electricity prices continue to rise, this will also have a positive effect on the balance sheet of the energy supplier.
As it stands now, the result for 2022 will be “within plan”. “But we’re not making extraordinarily high profits,” Entstrasser said.
Special dividend probably not payable
In all likelihood, however, it will be possible to pay the promised “special dividend” before the state election. In the case of additional income, it is always important to decide whether you want to invest it, pass it on to the owner (the state of Tyrol) or let the customer benefit. Gas supplier Tigas, on the other hand, will show a negative result in 2022 because the purchase prices were very high due to the crisis.
Aid package from the state and AK
Given the rising energy prices, according to Governor Anton Mattle (ÖVP) and chairman of the Workers’ Chamber Erwin Zangerl, a joint aid package is being worked on. The energy cost subsidy will be further developed and the AK emergency fund will be expanded into an “anti-inflation fund” and provided with more resources. The state will mobilize a “double-digit million dollar amount to absorb energy, housing and operating cost inflation,” and Tiwag also wants to contribute two million euros.
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.
