New 200-euro bonus in addition to electricity price brake

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For the first time, details of the electricity price brake were presented in the National Council. In addition to the electricity subsidy, however, there is another cash bonus.

In the Economic Committee, the government’s so-called electricity price brake has already been rubber-stamped with the votes of the ÖVP, Greens, and FPÖ, and now it is being discussed in the National Council. The details remained the same: All households, no matter how big they are and how many people live in them, are to receive a temporary electricity cost subsidy. This will come into effect when the electricity price exceeds the lower threshold of 10 cents per kilowatt hour – up to a maximum of 40 cents will be subsidized.

“The subsidy is to be applied from December 1, 2022, to June 30, 2024, in an automated manner via the electricity supplier,” according to a statement from Parliament. The electricity subsidy is to apply per household for up to 2,900-kilowatt hours of electricity per year. However, what was also discussed: In addition to the electricity price brake as a so-called electricity cost subsidy, there is also to be a grid cost subsidy – but not for everyone.

The network cost subsidy supports low-income households in addition to the electricity cost subsidy between January 1, 2023, and June 30, 2024, and covers 75 percent. “The annual amount is to be capped at 200 euros and, like the electricity cost subsidy, capped on an aliquot basis for shorter periods,” the Parliament announced about the new bonus so far. Entitled should be those households that are also exempt from the GIS fee.

“For the electricity cost subsidy and the network cost subsidy, around 2.73 billion euros are to be budgeted for 2023 and around 1.09 billion euros for 2024,” the National Council said. Curious: Due to its enormous costs, the Fiscal Council had already spoken out in advance to eliminate the electricity cost subsidy for most Austrians. Only the lowest-income 35 percent of households should receive an electricity cost brake, it said.

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