After 24 years of liberalization in Austria's energy sector, the joint task force from the Austrian competition authority and E-Control has concluded that a functioning nationwide competition is still absent. The report outlines several critical findings regarding market conditions and competition dynamics.

Firstly, the authorities determined that competition is geographically limited and must be analyzed separately for different customer groups, such as large and small consumers. This geographical and customer-based market segmentation is crucial for understanding where competition is actually taking place.

Secondly, the report reveals that energy providers dominate their respective network areas, holding market shares ranging from 68% to 98%. This high concentration of market power raises concerns about the competitive landscape.

Additionally, many providers, particularly those with extremely high market shares, restrict their services to their own network areas, further isolating the market. The report also highlights significant regional price variations for electricity, indicating a lack of a homogeneous national market.

Despite a slight reduction in consumption-dependent prices for electricity and gas since early 2023, end prices have not yet returned to pre-war levels. Consumer behavior is also a concern, as switching rates in Austria are notably low compared to other European countries, with only 4.5% for electricity and 6% for gas, compared to 18% and 13% in Italy, respectively. This low switching rate enhances the market power of providers.

Moreover, the market is characterized by a dense network of direct and indirect cross-shareholdings among energy suppliers, which negatively impacts competition and the overall economic environment. The report emphasizes that market concentration remains high, with local fragmentation and low switching rates contributing to a restricted competitive situation. The focus of the Austrian competition authority will now shift to individual investigations to address these issues.