Austria's industry will receive a 150 million euro electricity bonus for 2025!

Austria's industry will receive a 150 million euro electricity bonus for 2025!

Austria's Ministry of Economic Affairs today announced the introduction of an electricity bonus for energy-intensive industries for the years 2025 and 2026. The budget earmarks 75 million euros for each of these, making a total of 150 million euros. This is an important measure because the last electricity price cost equalization took place in 2022, when 185 million euros were paid out to 44 companies. Economics Minister Wolfgang Hattmannsdorfer emphasizes that relief is crucial for companies that are under pressure from high energy prices.

The price of electricity has fallen by around 75 percent since 2022, which benefits companies in Austria. In addition, only companies with an annual electricity consumption of 1 gigawatt hour (GWh) or more can apply for the bonus. However, in return, companies must invest in energy efficiency measures in order to receive the bonus. Hattmannsdorfer warned that without this support there would be a risk of the industry moving to countries with lower environmental regulations.

Measures for competitiveness

The new industrial price bonus will be decided by the Council of Ministers in the next two weeks and paid out retroactively for 2025. Given the fact that there were no compensation payments in 2023 and 2024, this represents important support for companies. Austria is in the middle of the European comparison of energy prices, which creates additional incentives for competitiveness.

The measures are being taken not only to relieve the burden on industry, but also to stop creeping deindustrialization. The Ministry of Economic Affairs has made it clear that security of supply, price developments and climate protection should be taken into account in all planning. A social tariff is also being worked on for private households in order to relieve the burden on this area as well.

Overall, the announcement of the electricity bonus shows that the Austrian government is responding to the challenges facing the industry and is taking measures to strengthen competitiveness in international comparison. These are steps in the right direction to support the economy in the changing energy context. You can find more information on this topic at IW Cologne.