The Austrian government has unveiled an ‘electricity price brake’ for households throughout the country, allowing them to consume 80% of last year’s electricity use at lower prices.

According to Austrian Chancellor Karl Nehammer, the main aim of the initiative was to have “relief over as wide an area as possible and as quickly as possible,” he told national newspaper, Krone. The aid will apply to each household, regardless of how many reside there or indeed the wealth level, Euractiv reports.

The total savings are forecast to amount to an annual €500, with approximately 3,000 kilowatt-hours (kWh) of electricity that can be utilised at a discount of 10 cents per kWh. In addition, a total of €2.5 billion will be allotted to subsidising electricity bills, the government went on to add.

The measure needs to pass parliament, and although the Austrian government holds a majority, there has been fierce criticism of the plans from opposition parties. The far-right FPÖ described the move as a “knee-jerk” reaction.

“The plans of the ÖVP and the Greens are neither accurate nor do they set the right energy-saving incentives,” said Karin Doppelbauer, energy policy spokesperson of liberal NEOS.

The main criticism from the opposition is that the government has not distinguished between single and multi-person households, the report goes on to say.

“A single household in a smaller flat with a lower electricity consumption gets the same amount as a family of several,” Doppelbauer added.

The move is intended to limit the general rise in costs within the energy sector, and the resolution for the electricity price brake in parliament should then be made in October, Switzerland Times reports.