Higher network costs – this is how energy transition influences the electricity bill

Two large factors determine how much we pay for our electricity: the electricity price itself and the network loads. The electricity market was liberalized in 2001, but although customers have a free choice with countless providers during electricity, they are still dependent on the old network providers. “It is natural monopolies, just like with water pipes or railway rails,” explains economist Norbert Wohlgemuth. “That is why regulations are also necessary.”

Large differences in Austria
And this regulation takes over the e-check in Austria. All network providers submit their costs there, but also planned planned investments – the regulator then checks them and defines the respective network costs. “The costs are divided by the amount of electricity supply, so they are specified in cent per kWh,” explains E-Control Member of Alfons Haber. There are significant differences between the 14 network areas in Austria (see image below).

In addition to competition, the Kleinwalsertal runs with 21.91 cents/kWh, because the valley can only be supplied via Germany. In the federal states, Carinthia then occupies the “top position” with 11.78 cents, well above the average of Austria of 9.28 cents. There is an unfavorable mix in the southernmost state: strong erilation of the deepest valleys and the mountains requires many lines, but the weaker economy also means less power consumption.

Relatively high costs are divided by relatively few kilowatt hours. But network costs will rise throughout Austria and this trend will be exacerbated in the coming years – factors such as personnel costs and higher credit interests will also influence industry. “We are creating more and more energy in Austria, but energy is currently not stored in large form,” explains Haber.

Increasing investments by network operators
In the expectation of enormously increasing electricity consumption due to industry and e-mobility, the network operators many investments will invest in the next ten years to a total of almost 25 billion euros. “Investments are only a share in network costs. These increases in investments do not reflect one-on-one in the network rates,” says the E-Control Board.

Investments are also about security security in Austria, which is a real location advantage for industrial companies – a production error costs so much that higher energy costs are accepted.

“For the planned low-carbon and electrification, electricity networks must be built, but also regulated,” the e-control board emphasizes. “The question is: how many networks do we need in the future and who will pay how much for the connection?” Because only with much higher electricity consumption, that network operators also expect, the network costs do not clearly increase.

The industry not only expects that it electrifies many of its processes, but that e-mobility will also increase considerably and heat pumps are increasingly being used instead of gas heating. A challenge that should not be underestimated is the strong expansion of photovoltaic.

Photovoltaic and honest costs
“About 470,000 PV systems are installed in Austria, which are 25 percent of the total performance of power plants,” Haber describes the situation. “In 2024, 2.1 Gigawatts were added and around 84,000 new counting points.” As is known, these systems produce a lot of electricity, especially in the summer and during lunch. So it always happens that the electricity prices are for hours at zero and rise sharply in the evening.

“Instead of a subsequent current rate, we could make a summer-headed rate,” we encourage the E-Control Board. Because only with efficient use the load on the networks can be reduced – then fewer investments would be needed. In principle, Haber demands that the tax must be distributed in a different way. Foods bear only six percent of the total network costs, the rest of the loved ones.

The e-control board also sees the discounts on network costs for energy communities. “In the case of a future design, network rates are not a financing instrument. Exemptions must be checked,” said Haber. In addition, smart meters, efficiency in network expansion and cost -justice can increase the tariff increases.