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BAFTA: Four awards for the road movie "Nomadland".

Electricity cost brake law ‘in preparation’

The legal text for the advertised electricity cost brake is not yet ready. The Ministry of Energy today announced the “Electricity Subsidy Law,” which was announced today when asked by ORF.at. A similar draft is due to be submitted to the National Assembly on September 21 and approved in mid-October.

The Cabinet, on Wednesday, approved a point on the project from Geusler’s circle. Electricity cost brakes provide you a subsidy of up to 30 cents per kWh for basic requirements of up to 2,900 kWh.

The Ministry: A two-thirds majority is not required

At the National Assembly meeting on September 21, the bill will be referred to the relevant specialized committee. The latter should discuss the text and will modify it if necessary. If the government has its way, the Electricity Cost Subsidy Act must be passed in mid-October.

The Department of Energy told the ORF. Last week a two-thirds majority would not be necessary to make a decision. Earlier media reported that the SPÖ or the FPÖ needed approval.

The electricity cost brake should come into effect from December, and is currently limited to mid-2024. The measure is expected to spare each household an average of €500 per year. The cost of the “brakes” is said to be three or four billion euros. The Impact Oriented Impact Assessment (WFA) is still pending.

Austria schedule renewed criticism

Agenda Austria, a liberal business think tank, continues to strongly criticize the measure as “financing irrigation”. The brake on the cost of electricity only serves to delay the significant increase in electricity prices for private consumers. If the measure expires in mid-2024 as currently planned and customers no longer receive funding, the cost increase will be even more severe.

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Instead, that is, without phasing out, the country will have to “incur enormous costs,” according to Austria’s Agenda economist, Marcel Gutiert today. This in turn works only at the expense of future generations or with significant tax increases in the coming years.