Austria to spend $584 million of state-owned company reserves to lower energy costs

VIENNA, Dec 4 (Reuters) - Austria’s government plans to finance a 500-million-euro ($584 million) package to reduce energy costs by using special distributions and reserves of state-owned companies, it said on Thursday.

200 million euros will come from reserves of real estate operator BIG, 200 million euros from energy group Verbund.VI> and 100 million euros from previously undistributed profits of holding company OBAG, the economy ministry said in a statement.

The aim is to bring noticeable relief to households and businesses, Chancellor Christian Stocker said without giving details.

The financial package follows a planned law for cheaper electricity that is still awaiting approval.

Verbund has already announced that it will propose a special dividend of around 400 million euros for 2025 at the annual general meeting, around 200 million of which will go to the government, which holds 51% of the company.

($1 = 0.8564 euros)

(Reporting by Alexandra Schwarz-Goerlich, writing by Marleen Kaesebier, editing by Thomas Seythal)