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    Austria's Verbund Hikes Retail Prices

Summary

The rising prices in the wholesale markets are the cause.

by: William Powell

Posted in:

Complimentary, Natural Gas and LNG News, Europe, Corporate, Market News, News By Country, Austria

Austria's Verbund Hikes Retail Prices

As a consequence of rising wholesale prices, Austrian utility Verbund is raising the electricity and gas tariffs for household and commercial customers, it said February 4. Customers who object may do so in writing, which will terminate their contract with Verbund.

The European wholesale price for electricity is linked to primary energy prices for coal, oil and gas as well as prices for CO2 certificates. Power prices have more than doubled in the last three years. The entry into force of the electricity price zone separation between Germany and Austria October 1  further increased wholesale prices. The Austrian Gas Price Index (OGPI) also rose by almost 20% in 2018.

The total costs (energy, grid, taxes and charges) will increase on average by 9% for electricity and 7.6% for gas.