VERBUND Lowers Electricity Price by Approximately 5 Percent

In accordance with the Eco-Electricity Act, VERBUND, Austria's leading electricity company and one of the largest producers of hydropower in Europe, will reduce the electricity price for private and commercial customers by approximately 5 percent with effect from 1 July 2012. Hence, VERBUND is still one of Austria's lowest cost electricity providers and guarantees its extremely attractive prices for electricity made of 100 % Austrian hydropower until February 2014. The eco-electricity charges will now be covered by the regional distribution system operators via the network fee.

With its attractive electricity prices for private and commercial customers, VERBUND has been the key competition driver in the Austrian electricity market since 2005. New VERBUND customers make an annual saving of up to 100 euro with 100 % Austrian hydropower and also support the expansion of renewable energy production. VERBUND already operates 123 hydropower plants and will invest approximately 2.4 billion euro in the optimisation of its existing facilities and the construction of new hydropower plants up to 2016.

Electricity price and the Eco-Electricity Act

In Austria, the total cost for electricity is made up of the electricity price, the network fee as well as taxes and charges, e.g. the eco-electricity charge. Today, the electricity price for new customers is at approximately the same level as it was 11 years ago prior to the deregulation of the electricity market. Taxes and charges, on the other hand, have doubled. In accordance with the Eco-Electricity Act, the eco-electricity charge will no longer be covered by the electricity suppliers but by the regional distribution system operators.