Heating costs rise as some energy tariffs remain fixed

Heating costs are set to climb this winter, although some energy providers say their tariffs will remain unchanged. Inflation in Austria rose to 3.6 percent in September, driven largely by higher fuel and heating oil prices, ORF Upper Austria reported. Heating oil cost almost two-thirds more than a year earlier. Gas and district heating also became more expensive, while electricity prices fell.

Heating oil prices have risen by more than 60 percent and pellet prices by more than 30 percent, said Josef Baumgartner, an economist at the Austrian Institute for Economic Research. Prices are approaching levels seen in the most expensive winters, he said, but household costs will ultimately depend on how cold the winter is and how long it lasts.

Gas currently costs about 12 percent more than a year ago. Electricity is still cheaper, but prices could rise in the coming months. Johannes Mayer, head of the economics department at E-Control Austria, said most households were protected for the coming winter by contracts that lock in a price for 12 months. He said there were only a few contracts without that protection.

Customers whose contracts are ending, or who are moving, should compare prices and consider switching to a cheaper provider as soon as possible, Mayer said. Energy is unlikely to become cheaper in the coming months.

District heating customers are tied to a single provider. Where tariffs are regulated by a pricing authority, as in Linz, increases are likely to be smaller, Baumgartner said. Linz AG said its electricity, gas and district heating tariffs would stay unchanged through the winter, including for new customers. Energy AG said it would not raise electricity and gas prices for existing customers in the coming months, while its rates for new customers were still under review.

E-Control expects heating costs this winter to remain below the levels reached during the 2022 energy crisis.