VERBUND Remains One of the Best Priced Power Suppliers

4/14/2010Vienna

Due to general economic conditions and increased charges for green power plant funding, VERBUND is adjusting the energy price for its household customers to 7.30 cents per kWh with effect from 1 May 2010.

Nevertheless, VERBUND remains one of the best priced power suppliers in Austria. The energy share of the electricity tariff is increasing by 12%, the total price (including the grid tariff, as well as tax and duties) by 6%.

VERBUND is keeping the electricity tariff at a constantly low-priced level for its customers. Nevertheless, it is necessary to adjust the cost of energy in line with the overall basic economic situation and business requirements.

The pricing for VERBUND electricity is oriented on the long-term development of wholesale prices. Whereas industrial customers purchase electricity at a specific point in time and for a specific period, banking on a wholesale price increase during this period and that they have purchased electricity at a cheaper rate, the goal for household customers must primarily be to maintain price stability for as long as possible.

The wholesale prices taken over a period of the last two to three years are relevant for today’s household customer prices. For this reason, it is not possible to draw any conclusions from the present wholesale prices in relation to currently valid household prices. For example, VERBUND did not pass on the 70 % increase in 2008 and kept the prices at a constant level for its customers.

Investments in sustainable energy production
A sustainable and environmentally friendly generation of energy is extremely important to VERBUND. A 3-person household which utilizes eco-friendly electricity saves around 900 kg CO2 per year and makes a valuable contribution to climate protection. VERBUND’s approx. 240,000 customers save around 216,000 tons of CO2 annually. Until 2015, VERBUND is investing a total of 800 million Euro in domestic hydropower in order to safeguard Austria’s long-term supply of clean electricity.

A further reason for raising the energy price is due to increased costs of government funding for green power plants. Green power plants encompass wind farms, photovoltaic plants, biomass and biogas. Under the Green Electricity Act, VERBUND is obligated to collect green electricity at a predetermined tariff. This green electricity tariff has seen an increase from 10.51 cents/kWh in 2009 to 12.42 cents/kWh (+1.91 cents/kWh) in 2010.

Austrian electricity tariff has above-average stability
In the long-term, the development of the Austrian electricity tariff lies below that of inflation or the prices for comparable goods. The price for VERBUND electricity, including grid charges, taxes and duties, lies at just 18 cents/kWh for average household customers in Vienna (4,000 kWh annual electricity consumption).

Since entering the consumer market in 2005, VERBUND has been a reliable partner offering electricity from 100% hydropower at an attractive price. Even after the price increase, VERBUND continues to be Austria’s best priced provider in most regions (see tariff calculator for price comparison: www.e-control.at).

In the next few days, VERBUND’s approx. 240,000 customers will receive written notification of the price adjustment.

Incidentally: For 0.18 Euro, 240 eggs can be boiled, 5.6 kg of laundry washed, or a room constantly lit for a period of 4 days with 1 kWh of 100% VERBUND hydropower generated electricity.