A move of energy supplier Verbund is intended to relieve Austrian end customers. Above all, socially disadvantaged households should benefit from this, but the average consumer will also benefit from this. The move could be a response to the federal government’s plan to skim off the huge profits of the energy companies.
In May, Verbund raised its energy prices sharply. On average, this can rise to more than 140 euros per year for a household with average consumption. In July, the state-majority group launched a discount campaign for anyone affected by the tariff hike. That is about two thirds of the approximately 500,000 electricity customers.
The domestic energy company Verbund does not want to keep the huge profits from increased electricity prices to itself. As explained to the “Krone” on Tuesday, one would like to offer extra help for hardships.
Who can save something:
- Two months of free electricity* for all domestic and commercial customers affected by the 2022 electricity price adjustment as a one-time automatic credit on the next bill.
- Two additional months of free energy for people already dependent on state aid (eg exemption from GIS fees, minimum income support, etc.) and therefore particularly affected by increased energy prices.
- A reduced bonus rate especially for existing customers whose electricity price has increased significantly as a result of the index-based price change.
- Since the price change took effect on 1.5. a bonus of 30 euros for all electricity and gas customers will be settled as a one-time credit on the next invoice.
“Bonus” does not include network charges
This “bonus” only affects the energy price, ie network costs, taxes and surcharges are not affected! That’s about half the total price. All involved will be informed in writing in the coming weeks, well before the reception bonus takes effect on 1 July 2022.
The plan to waive some of its electricity bills isn’t a particularly new idea — the company has already announced it will provide new customers with electricity and gas for free for up to four months.
Energy suppliers under pressure
Verbund has been under pressure lately due to massive price increases due to the general rise in energy costs. In particular, the advertising promise to offer electricity from 100 percent hydropower led to a lack of understanding among consumers for the additional costs that had now arisen.
But Chancellor Karl Nehammer’s (ÖVP) statement that he had instructed the finance minister to submit proposals to skim off the soaring profits also had a huge impact on stock prices – the Verbund share then fell by almost eleven percent.
Intervention in the electricity market “political discussion”
Last Friday, Verbund director Michael Strugl spoke out in favor of temporary interventions in the electricity market. “We have to come up with something to get rid of this price level,” he said in a webinar. Which means that could end up being “a political discussion.” As an example, Strugl referred to the Spanish gas price ceiling for electricity production.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
