Plus 54 percent!

Wien Energie: Fat profit and a promise

Wien Energie intends to invest the excess profits in price reductions.

(Bild: APA/Helmut Fohringer)

The municipal energy supplier Wien Energie once again earned well in 2023. Although turnover fell by 21.4 percent to 4.67 billion euros, the annual profit increased by 54.9 percent to 598.1 million euros. The Group management is now promising price adjustments.

"We are on a sound economic footing," said Wien Energie CEO Michael Strebl at a press conference on Friday. The energy supplier intends to invest the good result entirely in price reductions, security of supply and renewable energies.

Wholesale prices fall
The energy markets have calmed down somewhat over the past year, but the situation remains tense and volatile, said Strebl, referring to geopolitical uncertainties, particularly in relation to the wars in Ukraine and the Middle East. "The geopolitical situation remains uncertain and the market fluctuations are still there," said the Chairman of the Wien Energie Management Board. Wholesale prices have fallen, but the level before the energy crisis has still not been reached.

Michael Strebl wants to ease the burden on customers.

(Bild: APA/HANS PUNZ)

Strebl announced for 2024: "We are passing on our earnings, mainly in three areas, in relief measures for our customers, ensuring security of supply and green investments." Accordingly, an investment program of 502 million euros is planned for the current year; the money will flow into renewable electricity and heat generation or district cooling, for example.

Focus on district heating
A further 100 million euros are to be invested in the accelerated expansion of district heating in Vienna. A total of EUR 350 million is to be passed on to customers: EUR 149 million of this has already been announced for 2023 and will now affect earnings, EUR 140 million is reserved for the continuation of district heating discounts, EUR 50 million is earmarked for offers in the electricity and gas sector and EUR 12 million for a social package.

Wien Energie plans to reduce electricity and gas prices in the summer. Customers on the "Optima Entspannt" tariff who have not yet switched to a new tariff in the previous year will pay 55 percent less for electricity and 22 percent less for gas from July. Those who switched to the new tariff in the previous year will pay six percent less for electricity and 9.5 percent less for gas from July. Electricity will therefore cost 14.9 cents net per kilowatt hour in future, gas 5.7 cents.

Adjustments will be made automatically
"In this case, customers do not have to do anything proactively," said Strebl. Last year, price reductions were passed on to consumers, not only at Wien Energie, mainly by means of discounts, on the grounds that contracts could not be changed unilaterally even if prices were reduced.

Now things are different: the planned price reductions have come about because the indices on which the contract is based have fallen. "The indices would not have allowed for these reductions, which we passed on to our customers, in the previous year, which is why we worked with the discounts," explained Strebl. Price reductions in wholesale are visible in the relevant indices, such as the Austrian electricity price index (ÖSPI), with a delay of around one year.