High tariffs loom

Electricity brake: save a lot of money by switching contracts

At present, most new tariffs from both alternative providers and regional suppliers are below the maximum subsidy limit of 25 cents net per kWh.

(Bild: APA/HELMUT FOHRINGER)

Due to the halving of the subsidy from July 1 to a maximum of 15 cents, many consumers suddenly have tariffs that are too high. Taxpayers will also be burdened with more than 300 million euros.

As reported, the "electricity price brake" will be halved from July 1. This means that the state will only add a maximum of 15 cents per kilowatt hour (kWh) of consumption to the energy bill instead of the current 30 cents. The customer only pays the first ten cents. For example, anyone with an electricity tariff of 30 cents per kWh will currently receive a subsidy of 20 cents. In future, it will only be 15 cents.

This means that it will suddenly become important for customers with high electricity prices to switch to a cheaper contract, according to Stefan Spiegelhofer from durchblicker.at. "Currently, most new tariffs from both alternative providers and the provincial suppliers are below the maximum subsidy limit of 25 cents net per kWh.

The generous electricity price subsidy to date has meant that 70 percent of consumers have stuck with their expensive contract over the last two years. However, they should now quickly review their costs and look for a cheaper supplier.

Stefan Spiegelhofer von durchblicker.at

Secure a low price for 12 months
The cheapest fixed-price offers start at just 9.5 cents, and thanks to the price guarantee, customers can secure this low price for twelve months. Floater tariffs with monthly price adjustments currently even start at around six cents." According to Spiegelhofer, the generous electricity price subsidy to date has meant that 70 percent of consumers have stuck with their expensive contract over the last two years.

However, they should now quickly review their costs and look for a cheaper supplier. According to Durchblicker, a single household could save around 400 euros a year, a family up to 950 euros.

Disadvantages for taxpayers
The subsidy in this form is also disadvantageous for taxpayers. If consumers had already switched to the cheaper tariffs now available on the market, the state could have saved a calculated 338 million euros in unpaid electricity brake subsidies, says expert Spiegelhofer.