Austria’s new Electricity Economy Act introduces a framework aimed at supporting decentralised energy models and expanding the role of companies in electricity generation, use and trading. The legislation, which entered into force in December 2025, implements European rules on electricity markets and renewable energy and is part of a broader reform package designed to increase system flexibility and efficiency.
The law introduces new mechanisms such as peer-to-peer contracts, power purchase agreements and provisions for direct lines, alongside an expanded framework for energy communities. It also defines new roles within the market, including aggregators and organisers, reflecting the growing complexity of decentralised energy systems.
A central element of the reform is the concept of the “active customer”. This allows companies and other end users to generate, store, consume and sell electricity, either individually or through shared arrangements. Shared energy use can now be organised more flexibly through contractual arrangements, rather than being limited to predefined organisational structures.
The framework also introduces new operational and compliance requirements. Where certain thresholds are exceeded, participants in shared energy use must comply with obligations similar to those of energy suppliers, including transparent billing and information requirements. Data handling and metering processes are also more tightly regulated, with defined timelines for the provision of consumption data to market participants.
The legislation establishes the role of the organiser as a service provider supporting energy communities and shared energy arrangements. Unlike aggregators, organisers do not act as market participants but manage operational aspects such as participant coordination, allocation of energy and administrative processes. This role is intended to simplify the implementation of more complex energy-sharing models.
“The energy transition is increasingly shifting value creation towards decentralised actors,” the authors note, highlighting that companies are no longer limited to purchasing electricity but can actively participate in generation and distribution.
The law maintains existing structures for energy communities while integrating them into the broader framework for shared energy use. It also introduces changes affecting grid tariffs, storage facilities and system flexibility incentives, although some detailed provisions will be defined in secondary legislation.
New opportunities are also created through peer-to-peer contracts, which allow electricity to be exchanged directly between parties without requiring a formal organisational structure. Similarly, power purchase agreements remain an important tool for long-term electricity supply, although they continue to operate within existing regulatory requirements.
The implementation of some elements, particularly those related to shared energy use, will take effect from October 2026. This phased approach reflects the need to adapt market processes, data systems and billing structures to the new framework.
“A demanding legal framework is emerging, but one that also opens new economic scope for companies,” the authors state.
Overall, the legislation provides additional flexibility for companies to manage electricity procurement, self-consumption and distribution. However, it also increases the complexity of regulatory compliance, requiring careful planning and preparation ahead of full implementation.
Source: CMS
