Price increase at VERBUND - What happened?
VERBUND released an announcement in March about an upcoming price increase. The price increase came into effect on 1 May 2022. This raises many questions. We explain the background reasons.
How is the price of electricity arrived at and why is it also climbing at VERBUND – despite the energy coming from renewables?The price of electricity is determined on the open market and depends on supply and demand. This means that rising demand also results in higher electricity prices. The current energy crisis, triggered by events such as the invasion of Ukraine, has unleashed precisely this development.
If the entire demand cannot be covered with low-cost renewable sources, such as by VERBUND (our electricity comes 100% from Austrian hydropower, wind power and solar power), then fossil-fuel powered power plants have to be called upon to cover demand. These more expensive power plants determine the price of electricity from this point onwards (merit order principle). In Austria, these are mainly gas power plants. VERBUND, like other energy providers, cannot change this procedure, as the merit order principle is specified by the European energy market. This method is intended to guarantee a fair price for electricity under uniform terms and conditions.
What must we do now more than ever? Lead the energy transition.
What can we do for our customers in this challenging situation? Ease the burden.
VERBUND is responsible for its 500,000 household customers and is already working with its experts on measures and reliefs through to specific solutions for hardship cases. More information under the VERBUND Energy Bonus Package (German only).
For customers already facing difficulties paying their energy bill, VERBUND has worked with Caritas to set up an electricity assistance fund (German only) for hardship cases. If you are affected, you can contact them directly about your specific concerns.