On Wednesday, the federal government took another anti-inflation measure with the resolution on the brake on electricity prices in the Council of Ministers. The heads of government are currently announcing the details of the electricity price brake in a press conference (see live stream above). Chancellor Karl Nehammer (ÖVP) on this: “The goal is to continue to help people with the inflation to which everyone is exposed.” “Fast and social,” said Vice Chancellor Werner Kogler (Greens)
With the electricity price brake, all households up to approx. 2900 kWh of electricity consumption only have to pay ten cents per kWh, only the usual market price has to be paid for the additional consumption. This results in a saving of 400 to 800 euros.
The whole help package consists of many individual points. In total, almost EUR 35.2 billion is being invested to counteract the effects of inflation. The first two aid packages were adopted at the beginning of this year, the third in June. Now that the price of electricity is slowing down, lighting for other heat sources will follow.
WIFO criticizes the electricity price ceiling
Criticism of the electricity price cap comes from WIFO boss Gabriel Felbermayr. “2900 kilowatt hours is very high – this means that half of all households will probably be fully subsidized,” he said in the Ö1 “Tomorrow Journal”.
“Cardinal Error” in Electricity Price Brake
The “cardinal flaw”, as he calls it, is due to the fact that household size is not taken into account: Felbermayr’s proposal ultimately assumed a subsidy of 80 percent of energy consumption in the previous year – the rest would be covered by the high market price. But there is hardly any incentive to actually save electricity.
Source: Krone
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