Energy crisis: New electricity and gas contracts are already becoming more expensive

The Consequences of the Iran War reach the comparison portal perspective according to now too Electricity and gas customers in Austria. Newly concluded contracts would have each other has increased in price by several cents per kilowatt hour (kWh) since February said the portal in response to an APA request. The increase was more significant for gas, but the price for a kilowatt hour of electricity also increased noticeably. The portal, which makes money by arranging contracts, recommends a fixed price tariff.

According to Durchblicker, gas labor prices have risen by around 35 percent since February. While the cheapest offer in February was 3.85 cents net per kWh, today it is already 5.20 cents net. Although this is a significant increase, it remains far behind the development in wholesale trade: there, natural gas has risen in price by around 90 percent since the start of hostilities.

Cheapest fixed price tariff for gas, 17 percent more expensive

On the overall bill, however, the increase is more moderate, as other contract components such as the basic price or switching bonuses cushion the increase in the labor price. A sample household with an annual consumption of 12,000 kWh a month ago would have had costs of 1,151.38 euros per year with the cheapest fixed-price tariff. Today, the same household pays 1,342.11 euros per year for the cheapest fixed-price tariff, an increase of around 17 percent, Durchblicker calculated.

Plus 8 percent for electricity

There is also a noticeable increase in electricity tariffs, even if it is smaller. The cheapest labor price in February was 9.10 cents, today the cheapest labor price is 10.50 cents and has therefore increased by 15 percent. On the overall bill, the increase is also smaller here: a sample household paid 920 euros a year for the cheapest tariff in February and today has to pay 990 euros for the same consumption – an increase of around 8 percent.

“Our recommendation is clear: If you don’t yet have a fixed-price tariff, you should switch now and protect yourself against price increases. Many households are already doing this. The demand for fixed-price gas tariffs has increased by 41 percent compared to the beginning of February,” said Florian Koiner from Durchblicker. For the comparison, Durchblicker used an average value for all federal states. The costs may vary in the respective network areas due to different network fees.

Pay attention to contractual obligations

The regulatory authority E-Control, where all electricity providers in Austria have to report their current tariffs, is currently recommending that those who are not committed to secure a cheap tariff with a price guarantee for electricity and gas. It is important to ensure that the contract is binding for twelve months, because the fixed price applies to both sides. In the case of delivery contracts without commitment, the provider can withdraw from the contract at any time – even if there is a price guarantee.

Existing customers with fixed price tariffs do not have to worry about price increases for the time being. However, if the conflict lasts longer, it is assumed that the increased prices will one day also reach household customers who are currently still protected by fixed prices. Many energy suppliers purchase their electricity and gas quotas well in advance and in several tranches, thereby mitigating price peaks. However, if wholesale prices remain at the current level for a longer period of time, it is only a matter of time before they have to pass on the higher price level.