I have said since I moved to Vienna, Austria eight years ago, one of the few things that may eventually cause me to leave is the rising cost of utility prices making the country more and more expensive to live in every year.
Prices that increase at a far higher rate in Austria every year than almost any other country I have ever lived in (the U.S., Thailand, Malaysia, Spain), and that are currently some of the highest in the world.
Electricity prices in Austria set to rise in 2025
Sadly, according to the Chamber of Labour (AK), the cost for electricity in Austria is likely to increase again in 2025, due to grid fees being increased by up to 20 percent, as well as to higher electricity levies.
The return of the green energy surcharge will increase them even more.
All these new fees and higher prices then mean the average Austrian family will see an increase to their electricity bill of at least €350 a year.
Plus higher electricity rates, which will also add yet more strain on the Austrian household budget.
And, if you think that is already expensive, some utility analysts are predicting grid fees could more than double in the next five years.
No, unfortunately, Austria is not a competitive country when it comes to some critical living expenses.
And certainly not for industry, which is paying much higher rates for electricity (and gas) than businesses in much of the rest of the world.
No wonder production in Austria fell by another 2.7 percent in November, 2024. And no wonder Austria, and much of the rest of the EU, is struggling to compete with the rest of the world.
After all, when the cost of electricity increases, that expense is passed onto the consumer and the consumer then buys less.
Cost of electricity in Austria compared to the U.S.
In the United States, the world’s largest economy, the average cost of electricity per kilowatt-hour is 15.68 cents (it differs state to state, but that’s the average).
In Austria, according to Statistics Austria, the cost of electricity per kilowatt hour is approximately 28.7 cents.
That is heading towards double what an average American family pays for their electricity compared to a family in Austria.
So much so, the electricity bill (at 13.49 cents per kilowatt hour) for my parents 4-bedroom house with a swimming pool, washer/dryer that my mother uses 4 times a day (I kid you not), air conditioning/heating on 24 hours a day, four TVs etc is only 122% of my electricity bill for a tiny studio apartment in Vienna with no air conditioning/electric heat, no washer/dryer, no TV and, no, no swimming pool.
Yep, if you’re expecting an affordable electricity bill in Austria, think again. It’s impossible.
Renewable energy expansion to blame
Of course, as you might expect, most of these electricity increases in Austria are being implemented due to investment in “renewable energy expansion” and, unlike making things cheaper for the average consumer as was promised, they will make things even more expensive.
Meanwhile, as if rising electricity prices in Austria aren’t enough, the cost of natural gas is also up and expected to rise even further.
The only saving grace to all this?
At least we’re not the United Kingdom (yet!), which now has the highest electricity prices in the world. (Four times higher than the U.S. and climbing).
