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Vienna's energy company Wien Energie to lower gas and energy prices

The Local Austria
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Vienna's energy company Wien Energie to lower gas and energy prices
Wien Energie is the Viennese state-run energy company. Photo by Pok Rie: https://www.pexels.com/photo/electric-posts-409020/

Wien Energie is set to cut down prices of gas and electricity from July after announcing a € 340 million relief package from its yearly profits.

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Vienna's state-run energy company Wien Energie is expected to implement price cuts starting from July after announcing a relief package totalling €340 million. This reduction will apply to all customers, including those using district heating, electricity, and gas.

The intention behind the relief package, which is financed by the company's profits, is to provide permanent price reductions without any plans for special promotions or vouchers for all consumers - and not only companies or new contracts. This confirmation came from the office of Finance City Councilor Peter Hanke (SPÖ) when speaking to wien.ORF.at on Monday.

Wien Energie serves two million people and 230,000 commercial and industrial establishments in Vienna, according to the company website.

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As reported by the Kronen Zeitung, households can expect savings between 25 and 52 percent for electricity, depending on their individual contract and terms. The price reduction is set to take effect on July 1st, although there has been no official confirmation from the company. Further details are expected to be presented during a press conference this week.

READ ALSO: Is inflation finally subsiding in Austria?

Record profits amid rising prices

Wien Energie recorded a profit of €368 million in the previous year, primarily from electricity sales, while the end-customer business resulted in a loss of €143 million. As part of their profit announcement, the company committed to an aid package, initially set at €140 million, which has now been significantly increased.

The Vienna branch of the ÖVP (Austrian People's Party) expressed both praise and criticism, considering the step to be the right one but also stating that it is "overdue". The party is calling for a reduction in advance payments and the need for additional staff to improve customer service. 

READ ALSO: How Austria wants energy firms to lower prices for customers

The Vienna far-right FPÖ (Freedom Party of Austria) is demanding immediate and permanent price reductions, as well as an energy price guarantee.

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In addition to Wien Energie, the partially state-owned energy group Verbund also announced price reductions on Monday. Existing customers will be offered a new contract, which can be terminated at any time, with a price guarantee of 23.64 cents gross per kilowatt-hour (kWh) for 12 months. A new offer is also available for new customers, and Verbund has established a hardship fund amounting to €10 million.

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