By halving the subsidy to a maximum of 15 cents from July 1, many consumers suddenly have too high rates. Taxpayers will also be saddled with more than 300 million euros.
As reported, the “electricity price brake” will be halved from July 1. This means that the state will add a maximum of 15 cents per kilowatt hour (kWh) consumption to the energy bill instead of the current 30 cents. The customer only pays the first ten cents. For example, those who have an electricity rate of 30 cents per kWh currently receive a subsidy of 20 cents. In the future this will only be 15 cents.
This means that it suddenly becomes important for customers with high electricity prices to switch to a cheaper contract, says Stefan Spiegelhofer from durchblicker.at. “Currently, most new rates from both alternative providers and state suppliers are below the subsidy limit of a maximum of 25 cents net per kWh.
Benefit from a low price for 12 months
The cheapest fixed price offers start at just 9.5 cents and thanks to the price guarantee, customers can be assured of this low price for twelve months. Floater rates with monthly price adjustments currently start around six cents.” The previously generous electricity price subsidy has led to 70 percent of consumers staying on their expensive contracts over the past two years, Spiegelhofer says.
However, you should now quickly check your costs and look for a cheaper provider. According to Durchblicker, a single household could save about 400 euros per year, and a family up to 950 euros.
Disadvantages for taxpayers
Financing in this form is also disadvantageous for the taxpayer. If consumers had already switched to the cheap tariffs now available on the market, the state could have saved a calculated amount of 338 million euros in unpaid electricity brake subsidies, says expert Spiegelhofer.
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.
