Prices for household energy fell noticeably in September

Prices for household energy fell noticeably in September

Year-on-year costs have even fallen “by a remarkable 15.2 percent”. This means that the average energy costs per household have been falling continuously for a year now. However, energy was still 29.3 percent more expensive than before the energy crisis. According to the Austrian Energy Agency, the slightly lower energy prices in September this year – especially for fuels – continued to have a dampening effect on general inflation. “Compared to pre-crisis levels, however, prices remain high,” the experts admitted. Specifically, the costs are still 29.3 percent higher than in September 2021. And at the turn of the year the support measures will no longer apply.

Heating oil and fuel are heavily discounted

Heating oil and fuel prices have fallen significantly compared to the same month last year. Natural gas, firewood and pellets were also significantly cheaper in September this year. However, electricity prices have risen.

In detail: In September 2024, prices for premium gasoline fell by 4.3 percent compared to the previous month, while diesel became 3.8 percent cheaper. Year-on-year, the decline for diesel was 13.9 percent and for premium gasoline 11.7 percent – a tank full of diesel (50 liters) cost 12 euros less than a year before, and for premium gasoline it was 10 euros. “The falling fuel prices result in part from lower demand from China and Europe,” the energy agency said.

In September, you had to pay 4 percent less for heating oil than in the previous month of August and 17.4 percent less than a year earlier, but still 44.9 percent more than in September 2021. Household prices for gas recently fell compared to August fell by 1.9 percent, compared to the previous year it was “a significant 26 percent”. However, gas was still 120.2 percent more expensive than in September 2021.

Electricity more expensive

Electricity, in turn, became more expensive compared to all comparable periods – by 0.1 percent compared to the previous month, by 5.9 percent compared to the same month last year and by 10.4 percent compared to the pre-crisis level in September 2021.

The price of wood pellets fell in September by 1 percent compared to the previous month and by 22.6 percent compared to the same month last year. That was almost a quarter (24.6 percent) more than in September 2021 before the energy crisis. Firewood was 1.3 percent cheaper in September this year compared to the previous month and 12.6 percent cheaper than the same month last year – it cost 44.9 percent more than in September three years ago.

The prices for district heating, in turn, rose by 1.4 percent month-on-month in September, but fell by 10.1 percent year-on-year and were therefore a significant 77.4 percent above the level before the energy crisis.

Slightly rising wholesale prices for natural gas

According to the energy agency, the latest geopolitical developments once again led to slightly higher wholesale prices for natural gas, which also had an impact on the electricity market. Customers with variable delivery contracts may have already noticed these changes on their bills. “However, this short-term development is overshadowed by an overarching trend of falling prices.”

Data from various sources indicate “that some Austrian households continue to purchase gas and electricity at high purchase prices – because contracts were concluded at times when energy prices were particularly high,” according to the energy agency. Especially in the electricity sector, high costs could increase even further at the turn of the year, as the electricity cost brake is scheduled to expire on December 31, 2024.

Electricity cost brake is expiring

“To put it simply, this measure currently limits the price of electricity to 10 cents per kWh – the difference is covered by the state.” An extension of this measure would not make sense from an energy economic perspective, according to Energy Agency expert Lukas Zwieb. Although the price cap provided relief in the short term and protected the population from the extreme price effects, the market has now gained stability and there are cheap offers again across the country. “It is important to know your own electricity costs, check them and consider alternative offers,” he recommended taking action now. A change of provider can be done in just a few steps and online using comparison portals such as the E-Control tariff calculator.

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Electricity price by country 2024

**Interview with Lukas Zwieb, Energy Agency Expert ⁤on Electricity Prices in Austria**

**Interviewer**: Thank⁤ you for joining us, Lukas. Let’s start with the recent trends in electricity prices in Austria. Can you ⁤give us an ​overview of the current situation?

**Lukas Zwieb**: Absolutely. As of September 2024, electricity prices have actually increased slightly by ⁤0.1% compared to the previous month and‌ 5.9% year-on-year. This is quite concerning because, despite⁣ a year of declining energy costs for households, electricity remains 10.4% higher than the⁣ levels we saw before⁢ the energy crisis in September 2021.

**Interviewer**: That’s interesting. You mentioned that while other‌ energy costs like heating oil⁤ and fuels have fallen significantly, electricity is on the rise. What do⁤ you think is driving this discrepancy?

**Lukas Zwieb**: You’re⁤ correct.⁤ Prices for fuels⁣ have seen notable reductions—premium gasoline and diesel, for example, ⁣have fallen by about 11% ​to 14% year-on-year.‍ The decreased ​demand globally, especially from China and Europe, has ​influenced ‌these price drops. On the other hand, electricity​ pricing is influenced by multiple factors, including recent geopolitical​ developments that have slightly increased wholesale natural gas prices, which in turn affects the electricity market.

**Interviewer**: Speaking of influences, the expiration of the⁢ electricity cost ‍brake at the‍ end of the year can impact household ​costs significantly. What should ‌consumers be aware of regarding this?

**Lukas Zwieb**: Yes,​ the expiration of the electricity cost brake at the end of December 2024‌ means that the capped price for electricity at 10 cents​ per kWh will come to an⁤ end. While this measure provided temporary relief, it’s essential for consumers ‍to understand⁣ their own electricity costs and seek out better deals. The market has⁣ stabilized, and there are competitively priced offers available. Consumers⁣ should ⁤use comparison tools to explore alternative providers.

**Interviewer**: That’s a valuable‌ insight. With household energy‍ expenses​ being as⁢ they are, do you foresee any‌ long-term ⁤trends the public should be aware of?

**Lukas Zwieb**: Long term, I anticipate that prices may fluctuate, influenced by global market dynamics and ⁣changes in energy policies. However, it’s critical for households⁣ to ‌stay informed about their⁢ energy contracts. Many are still on fixed contracts at high prices from last year’s peaks. As we move forward, those with variable contracts may‌ notice increases, so it’s wise to proactively manage your energy expenses.

**Interviewer**: Great advice, Lukas! Thank you for your insights regarding the current energy landscape in Austria.

**Lukas Zwieb**: Thank you for having me! It’s essential ⁣that we navigate these changes together.

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