Energy For Members

Reader question: Will I benefit from Austria's electricity price cap for my second home?

Amanda Previdelli
Amanda Previdelli - [email protected] • 8 Sep, 2022 Updated Thu 8 Sep 2022 13:59 CEST
image alt text
Have a second home in Austria? Here's what you need to know about the electricity price cap. (Photo by Sarah Mutter on Unsplash)

Austrian residences will benefit from a price brake as the government seeks to contain rising prices. But will it be in place for second homes as well?

Austria has announced a price cap on electricity, which will last until June 30th 2024, benefiting every household in the country, according to Chancellor Karl Nehammer (ÖVP).

The price of electricity will be subsidised up to a consumption of 2,900-kilowatt hours, the government said. Until that limit, it will cost only ten cents per kilowatt hour – the energy price from before the current energy crisis.

Above that consumption limit, people will have to pay market prices for what they consume.

At the same time, lower-income households, as well as those with more than three persons, will be able to apply for further assistance.

READ ALSO: How could Austria’s new electricity price brake benefit you?

Those who are exempt from the broadcasting fees (GIS), meaning they are lower-income, will receive an additional subsidy of up to €200. Additionally, households with more than three persons can apply for further relief, Nehammer said, without giving further details.

The government says these measures were to ensure that the subsidies would "secure people's basic electricity needs".

But what about people with second homes?

One question that arose after the announcement of the price cap and the further measures destined to help people of low income was whether those at the other end of the spectrum, particularly those with a house and a holiday home in Austria, would benefit as well.

It's a generous system which will cost up to €4 billion to public coffers, and the Finance Ministry has said that they prefer the measures to reach everyone as quickly as possible rather than they take too long but be targeted.

So, everyone who uses electricity will get the subsidy, whether they draw it for their primary residence, their second home, their holiday or no residence at all (i.e. businesses).

READ ALSO: When will Austria make the €500 anti-inflation payment and how do I get it?

For example, if you own an apartment in Vienna and a holiday home in Salzburg, you can have your electricity consumption subsidised twice. If you live in the UK and have a home in Tyrol, your holiday home will still benefit from the subsidy.

According to Statistics Austria, there are 1.2 million second homes in Austria.

There is also no distinction in income or number of people in a household for the subsidy - the only differences are the "extra" assistance for lower-income or homes with more than three people.

More

Comments

Amanda Previdelli 2022/09/08 13:59

Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also