Affordable Electricity Prices Thanks to Special Tariff Structure

Rising energy prices pose major challenges for vulnerable income groups in particular. Support measures specifically aimed at these groups can therefore be argued from a social perspective. In the course of the energy crisis, a number of support measures were implemented in Austria to alleviate the burden of the energy crisis on private households. Most of these measures focused on short-term and temporary relief for a broad group of beneficiaries. On the basis of quantitative simulations and qualitative assessments of four basic models, a subsidised electricity tariff limited to vulnerable income groups with a low, subsidised basic contingent including grid costs that addresses the incentives to save energy has proven to be superior in terms of overall social impact and fiscal costs. In contrast to comprehensive support measures for all private households, social tariffs of this type are not limited to times of crisis and can be implemented permanently. To keep administrative costs low and take-up high, largely automated processing is recommended.