Austria's Industrial Power Bonus: €150M to Combat High Energy Costs

Austrian industrial companies face higher energy costs than their counterparts in the USA or China, paying around 13 cents per kilowatt hour compared to about 8 cents. To tackle this, the government plans to introduce an industrial power bonus and other measures in the upcoming National Council sessions.

Minister of Economics Wolfgang Hattmannsdorfer praised the government's plans, which include a €150 million bonus for 2025 and 2026 to directly reduce energy costs and encourage investment in energy efficiency. He believes these incentives can help Austria recover from high inflation.

The sessions will also see a new tipping regulation, which standardizes the assessment of social security contributions for tips nationwide. Starting in 2026, employees with cash handling will receive a monthly tip allowance of 65 euros, increasing to 85 euros in 2027 and 100 euros in 2028.

Additionally, the reform of the General Administrative Procedure Act (AVG) aims to reduce bureaucracy. It introduces large procedures from 50 parties onwards, an electronic announcement platform, and section-by-section procedures with deadlines to prevent delays.

The Freedom Party (FPÖ) criticized the government's plans, describing a recent press conference as a 'humiliating PR show' and accusing the government of failing to address Austria's economic issues. Despite this criticism, the government is pushing ahead with these reforms in the upcoming National Council sessions.