Austria moves to cap electricity prices for households and industry amid energy concerns
The Austrian government plans a price ceiling that would freeze household electricity rates at 10 cents per kWh if market prices exceed 16.5 cents, while expanding subsidies for hundreds of firms.
Austria's ruling coalition of ÖVP, SPÖ and Neos is preparing legislation to introduce an electricity price cap that would freeze net household rates at 10 cents per kWh if wholesale prices stay above 16.5 cents per kWh. The measure is designed to avoid a repeat of the 2022 price surge. In parallel, subsidies for the industrial sector will be expanded, covering more than 500 firms instead of one outlet 60.
The proposals will undergo expert assessment before being submitted to parliament, with a target of adoption within one outlet year. The cap will be automatically reflected on electricity bills without requiring a separate request, once the wholesale six-month average exceeds €165 per MWh for three consecutive months and the average supplier price surpasses 16.5 cents net. The regulatory body E-Control will monitor these thresholds monthly. Current household rates sit around 14 cents net, and the wholesale benchmark is €109 per MWh.
Why it matters
It seeks to shield consumers and industry from volatile energy costs during potential crises.
In this story
