Electricity prices - Austria

Austrian Electricity Market Overview

Electricity Generation (Sources and Trends)

Austria’s electricity supply in 2025 remains dominated by renewable energy, continuing a long-standing trend. Table 1 summarizes the generation mix based on the latest data (2024), with historical context:

Table 1: Austria’s Electricity Generation Mix (2024 data with context)

In total, roughly 89–95% of Austria’s electricity demand was covered by renewable sources in 2024 – a record high. This reflects Austria’s policy goal to achieve 100% renewable electricity (net) by 2030. The strong renewable growth and a dip in consumption (around 64.5 TWh demand in 2024 vs 82 TWh generation) led to an export surplus in 2024. However, seasonal imbalances persist: during winter months Austria still relies on imports or gas-fired generation when renewable output (especially solar) is low. The mismatch between midday/summer solar peaks and evening/winter demand is a key challenge, driving interest in storage, flexible generation, and demand-side management.

Composition of Electricity Prices for End Customers

Electricity prices for end consumers in Austria consist of several components: energy supply costs, regulated grid fees, and government taxes and surcharges.

Typical breakdown of household electricity price in Austria (3500 kWh/year, as of Jan. 2025). Energy (~44%) + Network (~28%) + Taxes/Surcharges (~28%). Major elements of taxes/surcharges include 20% VAT, electricity tax, renewable energy support charges, and local levies.

• Energy Supply (Wholesale & Retail): This is the cost of generating or procuring the electricity. In Austria’s liberalized market, suppliers buy electricity on the wholesale market or produce it, and add a retail margin. This energy component typically makes up about 40–50% of the end-user price. It can vary with market conditions and procurement strategies. (Notably, wholesale power prices spiked in 2022–2023 during the energy crisis, then fell in 2024 to an average of €0.06–0.08 per kWh, with occasional spikes up to €0.90 in winter and even negative prices during high renewable output. These wholesale trends eventually feed into retail energy prices.)

• Grid Fees (Network Tariffs): Using the transmission and distribution network incurs regulated charges. These fees (for grid maintenance, expansion, operation, metering, etc.) are set by the regulator E-Control and differ by region and customer category. They typically account for roughly 25–30% of the total bill. The grid tariff includes components like a usage-based fee per kWh and, for larger users, a demand charge. Regional variations exist because network costs and customer density differ by province. In 2025, network tariffs saw a significant increase (about +23% on average for households). This was driven by rising infrastructure investment costs and lower distributed volumes (partly due to many customers installing PV and consuming less from the grid). For example, grid fees rose ~+32% in Vienna and Lower Austria, but only ~+8% in Tyrol. Despite these hikes, grid charges remain regulated to only recover allowed costs (no profit margin for network operators beyond what regulation permits).

• Taxes and Surcharges: These form the remainder (~20–28% of the bill). Key elements are:

  • Electricity Tax (Elektrizitätsabgabe): A federal energy tax of €0.015 per kWh (1.5 cents/kWh). Until end-2024, the government temporarily reduced this tax to just 0.1 cents/kWh (a ~90% cut) to ease consumer costs during the energy crisis. As of 1 Jan 2025 the full rate applies again. For a typical household (3500–4000 kWh/year) this means paying around €50–60 per year in electricity tax in 2025, versus only a few euros under the reduced rate in 2024.
  • Value Added Tax (USt): 20% VAT is applied on all components of the bill (energy, network, other taxes). This typically makes up ~16–17% of the final price. (Essentially, one-fifth of the pre-VAT price.)
  • Renewable Energy Surcharges: Austria finances its renewable energy support via end-user surcharges, which are collected by network operators and passed to the government’s clearing agency (OeMAG). In 2025, these “Erneuerbaren-Förderkosten” consist of a fixed annual fee of €19.02 per household meter plus a consumption-based fee of €0.796 cents/kWh (plus a small fixed amount €4.695 per year for most households). These charges, listed on bills as part of “Netzkosten,” fund feed-in tariffs or market premiums for renewable generators. Note: In 2022–2024, Austria suspended or state-funded these renewable surcharges to shield consumers, but they are in effect again from 2025 (albeit at a reduced level compared to some other countries).
  • Local Levies: Some municipalities levy additional charges. For example, Vienna applies a “Gebrauchsabgabe” (usage/concession fee) of 6% on the energy portion of the bill. This equates to roughly 4% of the total price for a typical household. Not all regions have this charge, but in cities like Vienna it’s a notable line item.

In summary, an average Austrian household in 2025 sees roughly 45% of their electricity cost from the energy supply, ~25–30% from network tariffs, and the remaining ~25% from taxes and levies. This composition can vary slightly by province and consumption level. Competition among suppliers affects the energy portion, while the other components are the same regardless of supplier. Consumers can use price comparison tools to shop the energy component, but cannot avoid the regulated fees and taxes which are uniformly applied.

(Note: In addition to the above components, the Austrian government implemented a “Strompreisbremse” (electricity price brake) from fall 2022 through 2023-24 as a temporary relief measure. It subsidized the first tranche of household consumption at a discounted rate. That measure expired on 31 Dec 2024. Thus, as of 2025 the market has returned to normal pricing without that subsidy, meaning end-users once again pay the full cost components described above.)

Dynamic Electricity Tariffs: Concept and Regulation

Dynamic electricity tariffs (also called spot price or indexed tariffs) are retail contracts where the price per kWh varies in real time or at short intervals (typically hourly). Unlike fixed or annually adjusted tariffs, a dynamic tariff directly follows wholesale market price fluctuations. In practice, this means electricity rates are tied to the hourly prices on an exchange – in Austria’s case, usually the EPEX Spot market (Austrian trading zone). Prices for each hour of the next day are fixed daily in the EPEX Spot day-ahead auction, and passed through to consumers in dynamic tariff plans.

Under a dynamic tariff, customers pay more in high-price hours and less in low-price hours. For example, if midday prices drop due to abundant solar production, a dynamic tariff user benefits from cheap power at that time; however, they will also pay higher rates in the evening when demand peaks or when market prices spike. In essence, price risk (and opportunity) is transferred to the consumer. This model rewards those who can shift usage to cheaper periods (e.g. running appliances at noon or overnight when prices are low, charging an EV when wind output is high, etc.), but it also requires tolerance for volatility. Suppliers often advise that such tariffs are most suitable for engaged customers who monitor prices and adjust consumption accordingly.

How dynamic pricing is billed: Typically, the supplier charges the hourly EPEX Spot price (in € per kWh) plus a small markup to cover their costs and profit. This markup can be a fixed fee per kWh and/or a percentage adder. Most dynamic plans also have a monthly base fee (Grundpauschale) like traditional plans. For example, a tariff might charge “wholesale price + 1.5 cents/kWh + €3 per month”. In some cases a percentage markup is used instead (e.g. wholesale price + 5%). Table 2 in the next section gives examples of such fee structures. Aside from the energy pricing, the grid fees, taxes, and other charges are applied normally on a dynamic tariff bill just as with any other tariff.

Technical requirements: To take advantage of a dynamic tariff, a customer must have a smart meter capable of recording interval consumption. In Austria, smart meter rollout is well advanced – over 85% of meters were digital by late 2023, and the rollout is expected to reach ~95% by end of 2024. These smart meters can record consumption in 15-minute intervals and communicate data to the grid operator. By default, many smart meters transmit daily totals, but customers can opt-in to quarter-hour interval reporting (around 600k households had enabled full interval mode by 2023). A dynamic tariff requires this opt-in, so that the supplier can bill each hour’s usage at the corresponding hourly price. In other words, the meter must provide timestamped consumption data. Austrian law mandated the nationwide smart meter rollout precisely to enable such advanced services and demand response. With the rollout nearly complete, almost all consumers have the option to choose a dynamic pricing contract in 2025 if they wish.

Connection to wholesale markets: Austria is part of the integrated Central European power market. The EPEX Spot exchange (which operates the day-ahead and intraday markets for Austria, Germany, France, etc.) publishes an Austrian price for each hour of the day. Dynamic retail tariffs are typically indexed to the EPEX Spot Austria hourly day-ahead price. Some products may also incorporate intraday prices or other indices, but day-ahead is the norm. Notably, the granularity of pricing is increasing – EPEX Spot has announced that in mid-2025 the day-ahead auction will move from hourly to 15-minute price intervals for Austria (aligning with how intraday already works). This means dynamic tariffs could eventually adjust every 15 minutes, though initially most suppliers will likely stick to hourly billing for simplicity. The overall trend is toward closer-to-real-time pricing as markets evolve.

Regulatory framework: At the EU level, dynamic pricing for retail consumers is encouraged and protected by law. The EU Electricity Directive (2019/944) gives consumers the right to request a dynamic price contract if they have a smart meter. It explicitly requires Member States to ensure that every supplier with more than 200,000 customers offers at least one dynamic electricity price contract to households and small businesses. Consumers must also be informed about the opportunities and risks of such contracts. Austria transposed these provisions into national law (e.g. through the Elektrizitätswirtschafts- und -organisationsgesetz, ElWOG). The national regulator, E-Control, monitors compliance. By 2025, all of Austria’s large electricity providers have indeed developed dynamic pricing options (as detailed in the next section) to meet this requirement. Furthermore, consumer protection rules apply to dynamic tariffs as they do to any energy contract – terms must be transparent, and there are typically no lock-in obligations (most dynamic tariffs are offered without fixed term bindings, allowing customers to switch if the model doesn’t suit them).

It’s worth noting that regulators and consumer advocates advise caution: dynamic tariffs are not guaranteed to save money for everyone. If a customer cannot shift consumption or if wholesale prices rise dramatically, a “float” contract could end up more expensive than a fixed-rate contract. For example, a supplier’s documentation may show that in some months the dynamic plan cost more than the standard plan due to price spikes. Therefore, providing clear information is part of the regulatory guidance. Nonetheless, dynamic tariffs are seen as a key tool for demand-side flexibility – encouraging consumers to use power when it’s plentiful (renewable) and cheap, thereby supporting grid stability and the integration of renewables.

Providers Offering Dynamic Tariffs

By 2025, multiple electricity suppliers in Austria – including most major providers – offer dynamic pricing tariffs. Table 2 below lists several notable providers and their dynamic tariff offerings, indicating the type of tariff and target customer group:

Table 2: Selected Austrian Electricity Providers with Dynamic Tariffs (2025)

Additional providers: In addition to the above, many other suppliers now have spot-price tariffs. For example, EVN (the utility in Lower Austria, part of the Wien Energie alliance) introduced “Optima Float” for households (an index tariff with a cap mechanism), and Energie Burgenland has similar offerings via the EnergieAllianz group. Smaller municipal and private providers have joined the trend too – e.g. Wels Strom (city utility in Wels), Stadtwerke Klagenfurt, AAE Naturstrom (a renewable co-op in Carinthia), AVL/AVIA Energy, and even a retail-branded product “Hofer Grünstrom” (offered by EP Energy) all offer hourly indexed tariffs. In fact, a 2025 comparison showed over a dozen spot-price tariff options in the Austrian market, reflecting a significant shift as utilities move “out of their comfort zone” to embrace dynamic pricing.

All these dynamic products require a smart meter with quarter-hour measurement enabled, and they bill via unified invoices that include energy and network charges together (so customers still receive one combined electricity bill). Importantly, suppliers typically provide online tools or apps for dynamic tariff customers – for instance, to view next-day prices, track hourly usage, or set up automated appliance control. This helps users take full advantage of price fluctuations.

In summary, Austria’s electricity market in 2025 is characterized by a renewables-dominated supply mix and an increasing empowerment of consumers through innovative tariffs. End-user prices are composed of competitive energy costs, regulated network fees, and taxes – with recent policy changes (like the end of temporary tax relief and reintroduction of renewable surcharges) affecting the exact price levels. Meanwhile, dynamic pricing has moved from niche to mainstream, backed by EU and national regulations. Most major Austrian providers now offer some form of dynamic tariff, giving consumers the option to peg their electricity costs to real-time market conditions. While still a relatively small segment of customers use these tariffs, their presence is a notable development towards a more flexible and responsive energy system – one that incentivizes consuming electricity when it is abundant and green. Regulators like E-Control see this as a positive step for integrating renewable energy, as long as consumers are aware of the risks and rewards involved. The expectation is that dynamic tariffs, smart meters, and informed consumers will play an increasingly important role in Austria’s journey to a sustainable and secure energy future.

Peak and Off-Peak Hours

Austria 2024 – Average Hourly Wholesale Electricity Price (EPEX)

1. The two clear price crests

*simple average of the hours within each window.

2. Mid‑day & deep‑night lulls

• Deep‑night off‑peak (01:00 – 05:00) bottoms at €0.080 – 0.083 / kWh. Base‑load nuclear, run‑of‑river hydro and wind often cover demand, so little high‑cost plant needs to run.
• Mid‑day dip (13:00 – 15:00) drops back to €0.083 – 0.087 / kWh even though demand is still moderate. Abundant solar across the Alpine–German bidding zone pushes marginal prices down; across Europe this “solar valley” has become deeper every year as PV capacity grows.

3. What the shape tells us about Austria’s system

4. How the pattern compares to neighbouring markets

The twin‑peak, solar‑valley profile is broadly shared by Germany and Switzerland, which sit in the same coupled EPEX SPOT zone. Recent market commentary attributes the sharpening of the trough mainly to the rapid build‑out of solar PV and lower fuel costs, while demand remains sticky in the morning and evening social routines.

Bottom line: 2024’s “typical” Austrian day shows a textbook morning‑and‑evening demand hump, but solar penetration is starting to carve a second off‑peak at lunchtime. Anyone able to time‑shift appliances or charge batteries between 11 am and 3 pm – or after midnight – can consistently buy power 30‑60 % below the evening marginal price.