About 180,000 customers of the Carinthian energy group Kelag have to adapt to new, uniform prices from August 1. In some cases, the price increase is more than 50 percent. But you still remain one of the cheaper energy companies in Austria. Kelag explains why in the “Krone” interview.
Kelag has been able to maintain its electricity prices for a long time. But that will now change. Because from June 19, the approximately 180,000 customers of Kelag will be informed about the new rates and things will change.
Price reduction for new customers
First the good news. Previously, new customers of the Carinthian energy group had to take into account a rate of 32.40 cents per kilowatt hour. With Kelag’s new rate structure, new customers can look forward to a reduction of up to 24.84 cents per kilowatt hour. The price should apply from mid-June and existing customers who have a higher rate can also switch to the cheaper rate.
“Kelag Strom Vorteil” is intended as a price guarantee
But existing customers will also be informed by letter about the new rate structure from 19 June. The energy company will standardize its rates on 1 August. After the price adjustment, customers will have to pay 24.84 cents per kilowatt hour in the future. “But we see ourselves as having a social responsibility,” explains Alexander Jordan, Head of Sales at Kelag. And that is why existing customers should also be given the opportunity to switch to a cheaper model. According to the energy company, the “Kelag Strom Vorteil” rate will be 19.80 cents per kilowatt hour in the future. “There’s also a 12-month price guarantee,” Jordan says in an interview with “Krone.” Still, the price increase eventually exceeds 50 percent.
And there will also be a new rate for households with a heat pump or electric heating (see graph below).
Planning makes Kelag a cheap electricity supplier
While other energy companies in Austria are lowering their prices, Kelag is raising them considerably. But a closer look at the market shows that the Carinthian group is one of the cheapest electricity providers in Austria despite the adjustment. “Thanks to our sourcing strategy, we have been able to hold our price for a long time,” says Jordan. The new pricing of the energy group has been carried out by market development.
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.
