Energy costs in Tyrol

Electricity price reduction followed by an increase for the grid

Tinetz announced an increase in grid fees on Friday.

(Bild: Manuel Schwaiger)

Customers of the Tyrolean regional energy supplier Tiwag can look forward to a reduction in the price of electricity, as reported by the "Krone" newspaper. Now the grid operator Tinetz announced an increase in grid fees on Friday. If the federal government increases the charges for grid fees as planned, it could be expensive.

Few issues are as complex as the cost of energy that customers have to pay. On the one hand, there is the price of electricity itself. On the other hand, there is the price of the infrastructure, i.e. the grid that is needed to bring the electricity to the end consumer.

Electricity price falls, grid fee rises
As reported, Tiwag is reducing the price of electricity by two cents to 9.8 cents per kilowatt hour (kWh) net from December 1. A reason for joy for many Tyroleans. But this joy is now somewhat dampened. On Friday, the two Tinetz managing directors Thomas Trattler and Thomas Rieder announced an increase in grid fees for 2025.

Tinetz Managing Directors Thomas Rieder (left) and Thomas Trattler.

(Bild: Manuel Schwaiger)

Increase by the state still uncertain
The increase in the grid fee itself is "only" 25 euros or 8.3 percent (including VAT) per year. The two managing directors are seeking clarification on the following point: in addition to the grid costs, there is the renewable energy subsidy, the renewable energy subsidy flat rate and the electricity levy. "Although these are collected by Tinetz, we pass them on to the state on a one-to-one basis," explain Trattler and Rieder.

We expect to invest around three billion euros by 2024.

Thomas Rieder und Thomas Trattler

Doubling is on the cards
Both the renewables subsidy and the flat-rate renewables subsidy were suspended in 2022 and 2023 as a result of exorbitant electricity prices. But now the state wants to get back in on the action. If it goes ahead as planned, the Tinetz bosses say that a doubling is on the cards. From 60 to 120 euros.

Will it remain the same price as before?
Expressed in simplified terms and concrete figures: In 2025, Tiwag and Tinetz customers will pay around 84 euros less per year for electricity and 25 euros more for the grid. The bottom line is that total energy costs will be 60 euros lower.

If the government actually doubles the aforementioned contributions from 60 to 120 euros, it will remain more or less the same price for the end customer as before.

Demand: Exemption regulation should remain in place
In conclusion, the two managing directors emphasize that the grid tariffs will flow one-to-one into investments for the energy transition. Around 150 million euros will flow into the expansion of the grid in 2025. "We expect to invest around three billion euros by 2024," say Trattler and Rieder.

Both advocate that "the legislator should continue to make an exception. Just as LH Anton Mattle and AK President Erwin Zangerl have called for".