EVN Launches Competitive Power Pricing to Secure Market Position

Austrian utility EVN introduces a new 10-cent electricity tariff with a 12-month price guarantee to win customer loyalty, while advancing internal site consolidation for efficiency.

Austrian utility provider EVN is initiating a fresh commercial strategy with the introduction of a new electricity tariff effective April 1. The company is adopting an aggressive pricing model, setting a rate of ten cents per kilowatt hour, aiming to secure long-term customer loyalty in its core market of Lower Austria. This commercial push coincides with ongoing internal efficiency drives, while the company's shares continue to seek stability following a recent market correction.

Operational Consolidation Advances

Alongside its customer-facing initiatives, EVN is progressing with internal consolidation. The Scheibbs site will be fully dissolved and integrated into the new central "Mostviertel West" region in Amstetten by mid-2026. The planned sale of the vacated property on Punzenauweg highlights the group's objective to reduce administrative overhead and streamline regional structures.

The company remains active in the municipal services sector. A recent project involved upgrading street lighting to LED technology in the municipality of Thomasberg. EVN now manages approximately 91,000 such light points across Lower Austria, representing a stable revenue stream within the energy efficiency segment.

Price Guarantee as a Strategic Tool

Central to the new offering is a contractual price guarantee valid for twelve months. A notable feature is the flexibility extended to existing customers: even those currently bound to contracts like "Optima Garant" until September 2026 have the option to switch to the new model early. Management's strategy addresses competitive pressures directly, emphasizing a straightforward online process to minimize barriers for customers considering a change.

Share Performance Context

These operational developments have yet to be fully reflected in the company's market valuation. EVN shares closed the last trading session at €27.10, trading approximately 4.8% below their 50-day moving average. However, the longer-term performance perspective remains robust; despite a pullback over the past month, the stock still shows a year-to-date gain of around 24%.

The market reception of the new tariff in April will be a key indicator of its effectiveness in stimulating new customer acquisition. Investors are also monitoring the progress of the site consolidation efforts, which are intended to support and secure the utility's operating margin.