Grid costs on the rise

Why electricity and gas bills will soon be more expensive

The energy transition is making electricity and gas bills more expensive.

(Bild: Krone KREATIV)

Households are facing higher electricity and gas bills next year. The phase-out of oil and gas means that alternative forms of energy and grid infrastructure will have to be expanded. These investments will largely be paid for by consumers through the grid costs. The AK expects grid costs to double by 2030 and is calling for reforms.

The fall in electricity and gas prices since last year has recently significantly reduced household spending on energy again. However, one item on the annual bill is likely to increase significantly in the future: grid costs. They make up around a third of the bill and are charged by the grid operators (e.g. Wiener Netze, Netze NÖ, APG).

The specific amount is set annually by the regulator E-Control in an ordinance (System Usage Charges Ordinance). In order to make the grids fit for the future - keyword energy transition - a lot of money has to be invested. According to conservative estimates, this is likely to be at least 20 billion euros over the next few years. The transmission system operator Austrian Power Grid (APG) alone, which is responsible for the large distribution grids, is investing around nine billion euros in the grids by 2034.

This is also urgently needed, as experts expect electricity consumption to increase by 30 percent by 2030 (due to greater electrification in companies, increasing e-mobility, more heat pumps, etc.). This means that a total of around 39 terawatt hours of additional electricity will be required.

AK expects grid costs to double
However, as the grids and their expansion are largely financed via the grid usage fees, these will soon rise sharply. "We expect grid fees to rise by 20 percent next year," emphasizes AK energy expert Joel Tölgyes. He even expects costs to double over the next few years. Tölgyes: "An average household currently pays around 300 euros net in grid fees per year. By 2030, these costs are likely to double to 600 euros".

Grid costs will double by 2030.

Joel Tölgyes, Energieexperte der Arbeiterkammer Wien

Bild: AK/Lisi Specht

What can be done to counter the increase in costs
In order to counteract this sharp rise in costs, the consumer advocates recommend turning several screws. For example, a coordinated expansion plan at all grid levels would be important. At present, this only exists for the transmission grids, but not at household level, explains Tölgyes. This leads to uncertainties, for example whether and when a PV system can be connected.

In addition, the state has to co-finance such projects, for example through investment grants, equity participation or longer depreciation periods. "Electricity grids are also used over generations," says the AK expert.

However, electricity producers and large consumers should also be made more liable, according to the proposal. For example, large-scale industry is currently responsible for 30 percent of electricity consumption, but only accounts for 14 percent of the grid costs of 2.5 billion euros last year. The situation is different for households, which account for a good quarter of electricity consumption but bear 44 percent of the grid fees.

There is also criticism of the basic distribution of grid fees between producers and consumers. The latter have to bear over 90 percent of the costs. In the previous year, the state covered 80 percent of the additional grid costs due to high energy prices.