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ENERGY COSTS: How to claim financial support in Vienna

Hayley Maguire
Hayley Maguire - [email protected]
ENERGY COSTS: How to claim financial support in Vienna
The City of Vienna has launched a new financial package to help with energy costs. Photo by Ina FASSBENDER / AFP

The City of Vienna has unveiled a new financial package to help low income households with soaring energy bills.

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According to the City of Vienna, bills for electricity and gas will increase by around €500 in 2022 for the average Viennese household.

This is a worrying development for many residents but for those on low incomes it could lead to some tough financial decisions.

To help ease the burden, the City of Vienna has unveiled a new financial support package - on top of Vienna’s existing energy support fund and the recently announced Federal Government €2 billion cost of living relief fund.

The initiative in Vienna is called Wiener Energieunterstützung Plus (Vienna Energy Support Plus) and is specifically focused on energy costs. It is expected to help around 260,000 people in the city.

But what is it and how does it work?

READ MORE: Austria unveils €2 billion relief package to fight rising cost of living

What is in the support package?

The Vienna Energy Support Plus has been put together by the Social Democratic Party (SPÖ) and the New Austria Liberal Forum (NEOS). It is a financial aid package worth €125 million.

There are three pillars to the package: a one-off energy allowance (Wiener Energiekostenpauschale); financial help with paying bills and energy advice (Energieunterstützung Neu); and support with the installation of photovoltaics and other sustainable forms of energy.

The Energiekostenpauschale (energy cost flat rate) will involve eligible households receiving the €200 allowance into their bank account in June, or by postal order for those without a bank account. This package is worth €50 million and MA 40 (City of Vienna department for social and health law) will be responsible for distributing it.

READ ALSO: EXPLAINED: Why are fuel prices increasing faster in Austria than elsewhere in the EU?

The second pillar (Energieunterstützung Neu) is for people who find themselves in arrears or unable to pay energy bills. They are advised to contact the City of Vienna to apply for additional financial help through this package.

Energieunterstützung Neu (energy support new) is a €26 million fund that is available to support households with energy costs. However, in these cases the money would be transferred directly to the energy supplier to pay part or all of the bill, depending on the situation.

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The third and final pillar in the package is aimed at financially supporting the renovation of old buildings, the installation of energy-efficient systems in new buildings and subsidies for sustainable energy systems across the city.

The City of Vienna is investing more than €48.3 million in this project with the aim to reduce energy costs for residents in the long term.

Who is eligible?

The financial support package is strictly aimed at supporting low income households. 

In Vienna, this means those on the minimum income (approximately 70,000 people), minimum pension (42,000 people), unemployment benefits (110,000) or housing assistance (40,000).

FOR MEMBERS: How will the war in Ukraine impact the cost of living in Austria?

According to Der Standard, the minimum income referred to by the City of Vienna is €977.94 per month for a single person or €733.46 per person per month for a couple, with €264.04 added for each child.

For those on a minimum pension, the rate is €1364.11 per month for singles and €1841.29 for couples.

People on unemployment benefits receive 60 percent of the last net salary, or 67 percent if they have children. Those on housing assistance earn less than €949.46 per month or €1425.53 for a couple.

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Why is Vienna launching this support package now?

Energy costs have been rising across Europe for months due to inflation. This is now being exacerbated by the war in Ukraine.

Unfortunately, people on low incomes are more likely to live in poorly insulated homes and spend more money on energy bills than the average household. As energy costs continue to rise this means more people could be forced to choose between paying for energy or food. 

There are particular concerns for the coming winter (2022/2023), which is reflected in the financial aid dedicated to helping households to transform their existing energy systems into more sustainable and cost-efficient systems.

Find out more about Vienna Energy Support Plus at the City of Vienna website.

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