Energy costs rise in Austria as heating season approaches

Austrian households face rising costs for heating as the winter season approaches. According to the Austrian Energy Agency, heating oil prices in August were 48.1 percent higher than the previous year. For example, filling a 3,000-liter tank currently costs approximately 5,700 euros, compared to roughly 3,200 euros in early January. Wood pellet prices have also increased by 32 percent.

In contrast to rising fuel and gas costs, electricity prices for consumers have decreased by an average of 10 percent compared to last year. However, the wholesale electricity price index has risen by 27.4 percent. This discrepancy is driven by the merit-order mechanism, where expensive gas power plants often set the price.

Renewable energy production has also seen fluctuations. The share of renewables in domestic electricity consumption dropped from 94 percent in 2024 to 78 percent in 2025. Factors contributing to this include drought affecting hydropower and summer heat reducing the efficiency of photovoltaic systems. Experts note that while renewables are key to long-term low prices, significant expansion of the power grid and storage capacity is required to reduce reliance on gas.