Electricity market

Electricity price breakdown

The price of electricity in Austria essentially consists of three components – the energy cost, the network charges and taxes. The energy cost is the price paid to energy suppliers for the electrical energy delivered. In a deregulated, competitive market, the price is set by each supplier individually in line with supply and demand. The network charges (grid tariff) represent the fees paid to the grid operators for their services. Grid tariffs are set by the regulator, which in the case of Austria is E-Control Austria. Taxes and surcharges are levied by the federal and state governments or by cities and municipalities. As well as being subject to VAT, the price of electrical energy also includes the contribution to the green electricity subsidy charged to all electricity consumers.