Gas levels high

Why energy prices are likely to fall further

After the massive rise in energy prices, the trend has calmed down again, but costs have not yet reached pre-crisis levels. E-Control has given the all-clear for gas: storage facilities are 75 percent full and the company is well equipped for the next two winters.

Many consumers are not even aware of their own costs. But because the amounts on their bills are so extremely high, they are forced to pay more attention to them. E-Control CEO Wolfgang Urbantschitsch: "In 2023, our advice center had to deal with more inquiries than ever before." Many discount campaigns or free months are also currently running, making it difficult to keep track. "It's unacceptable that E-Control's tariff calculator provides customers with better information than the suppliers themselves."

Price reductions not yet fully passed on
The extent to which the current reductions are already having an impact on households varies greatly. In general, the warm winter, full storage facilities and more renewables have pushed prices down. "However, the lower prices have not yet been passed on in full. We therefore expect further downward pressure on prices," says Urbantschitsch. This is because average costs are still not at pre-crisis levels (see chart).

(Bild: stock.adobe.com, Krone KREATIV)

Many consumers are currently fluctuating between variable and fixed tariffs. In the long term, the "floaters" are favorable despite recent price jumps upwards, as Urbantschitsch emphasizes: "This means that 2022 alone was really very expensive, in 2023 we were almost at the level of the electricity cost brake of 10 cents/kWh again, and in 2024 even significantly lower, namely below 8 cents/kWh. The supplier surcharge must also be added to these values, so that in 2024, with a low-cost supplier, the price will be around 10 cents/kWh."

The electricity price brake therefore acts more like a risk cushion in some cases. As the prices for some tariffs are already below ten cents, competition does exist.

Gas storage facilities are 75 percent full
Apart from electricity prices, gas prices have also fallen. After fears about the security of supply, there was enough for heating this winter. The coming winter is also safe due to the high fill levels. The expiry of the gas transit contract with Ukraine would therefore not affect the coming winter or the winter after next. The storage facilities are currently 75 percent full, with 73 terawatt hours (TWh) coming out of the winter this year. To put this into perspective: Austrians will consume 75.6 TWh in 2023, 12.5 percent less than in 2022. 

Over the next few years, as long as there is still enough gas, the focus can be on new suppliers. Capacities are currently being expanded, liquid gas is also becoming increasingly available and the pipeline network is growing.