Higher market prices and an increase in production have helped domestic utility Verbund achieve record results. The consolidated result increased by no less than 32 percent to 2.226 billion euros. The state can be happy with this, as it collects more than 1.1 billion euros in taxes, dividends and profit skimming. Good news for household customers too: energy prices are going down.
In concrete terms, the gas price will drop by an average of eight percent as of May 1, while electricity prices for existing customers will drop to a gross 18.72 cents per kWh on July 1. New customers have been able to enjoy cheaper electricity rates since February 26. “We are one of the very cheap providers in Austria. “It is our contribution to easing the burden on households,” says Michael Strugl, CEO of Verbund. An average household should save about 100 euros annually on electricity and gas.
The previous year was characterized by a very turbulent environment. In addition to the geopolitical upheavals, the weakened economy and increased interest rate environment (making investments more difficult) have put pressure on the utility. Nevertheless, thanks to higher market prices and increased production (hydropower was 98 percent of an average year in 2023), a record profit of 2.266 billion euros (+32 percent) was achieved.
The state collects 1.1 billion euros
The good development is also a boon for the state – and therefore for the taxpayers. In addition to 450 million euros in taxes and levies and 90 million euros in ‘profit skimming’, 650 million euros in dividends (€3.40 per share) or special dividend (15 cents per share) flows to the Republic, which holds 51 percent of the owns shares. the utility.
5.5 billion euros for the expansion of networks, power plants and storage
The rest of the profit that is not paid out goes to expanding the networks, power plants and storage facilities. “Every euro earned is reinvested,” Strugl emphasizes. The association alone will have 5.5 billion euros available over the next three years. But they also want to attract capital through new, ‘green’ group bonds.
To achieve the energy transformation by 2030, all stakeholders will need to invest a total of 60 billion euros in Austria. Transmission system operator APG alone is investing approximately nine billion euros in network expansion by 2034 (for example the 380 kV line in Salzburg).
Cautious outlook for 2024
CFO Peter Kollmann expects ‘only’ a consolidated profit of between 1.3 and 1.75 billion euros this year. The reason for this is the volatile prices that tend to fall. But you don’t know exactly where the journey is going.
For example, over the past five to six months, the wholesale price for electricity has fallen from 140 to 73 euros per megawatt hour (MWh). The gas price is almost at pre-crisis levels, says Kollmann. A lot of LNG gas is currently coming onto the market at low prices because China is supplied from Russia and American quantities are therefore cheaper. The bottom line is that Verbund operators expect relatively stable electricity costs this year and possibly even further declining gas prices on the market.
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.
