Gas bills set to soar in Austria

Gas bills set to soar in Austria
Gas prices are set to rise in Austria. Photo by Ilse Driessen on Unsplash
A worldwide hike in gas prices is set to be felt in Austria.

People who buy their household energy with a contract which is based on the monthly wholesale price will notice their gas bills increasing steeply in Austria, broadcaster ORF reports. 

The gas price index (ÖGPI), which is calculated by the Austrian Energy Agency, is five times as high in September as it was a year ago, which reflects the situation on the global gas market as the world recovers from the Covid-19 pandemic.

Gas prices have surged around the globe, with the burden being placed on consumers in several countries. 

Germany has already reported an increase in gas prices for autumn and winter, but in Austria price increases in the standard tariffs have not yet been publicly announced.

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Karina Knaus, head of the Center for Economics, Consumers and Prices at the Austrian Energy Agency, told broadcaster ORF that it could be assumed prices would rise in Austria as well.

“Since the price movements of the past few months have been very pronounced and unusual and there is currently no trend reversal in sight, it can be assumed that prices may rise here in the coming weeks and months as well.”

Knaus however said sharp spikes should not be anticipated. 

“In general, household gas prices in Austria are rather sluggish, so temporary and short-term movements on the wholesale market – neither upwards nor downwards – are usually not Immediately passed on to the households, since procurement in this segment is also long-term.”

The reason for the higher prices was a greater than usual demand during the pandemic, which has cut into gas supply. 

Prices are not expected to go down until the spring of 2022. 

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