Verbund AG, formerly known as Verbundgesellschaft or Österreichische Elektrizitätswirtschafts-AG, is Austria's largest electricity provider. Verbund covers around 40 percent of electricity demands in Austria and generates 90 percent thereof from hydro power. In addition, Verbund operates the supraregional power grid through its subsidiary APG. Verbund AG is listed on the Vienna Stock Exchange and in the Austrian Traded Index, the key index of Austrian stock-listed companies. The largest shareholder, at 51%, is the Republic of Austria.

1947 saw the establishment of Verbund as "Österreichische Elektrizitätswirtschafts-AG" through the second nationalization act. In the post-war years, the company's most urgent task was the planning, construction and operation of large power plants as well as the operation of the supraregional power grid. At the same time, special purpose vehicles (SPVs) were established to promote the construction of large hydropower and thermal power plants. The shares of the Republic of Austria in these special purpose vehicles were held by Verbund as a trustee. In 1955 it was once more possible to meet electricity requirements entirely using own domestic resources. However, as a result of the rapid economic growth, additional electricity had to be imported from 1965 on.

Initially, Verbund - pursuant to prevailing legal principles - was one hundred percent nationalized. In mid-1987, the second nationalization act was amended to the extent that Verbund could be partially privatized, as long as 51 percent remained in government hands. At the same time, Verbund acquired the shares of the Republic of Austria in the special purpose vehicles (Österreichische Donaukraftwerke AG, Österreichische Draukraftwerke AG, Tauernkraftwerke AG, Verbundkraft Elektrizitätswerke GmbH, Ennskraftwerke AG, Donaukraftwerk Jochenstein AG and Österreichisch-Bayerische Kraftwerke AG). In 1988, Verbund was partially deregulated by going public, at which point 49% of the shares were sold.

The most significant break in Verbund's history occurred in 1995 – this was the year that Austria entered the European Union, which, one year later, launched the deregulation of the electricity market. In order to better prepare for this complete opening, Verbund concentrated on the core business of electricity and restructured the Group, a result of which was that the activities were consolidated in a strategic holding company with the business divisions of generation, trade, transmission and equity interests. EU regulations required unbundling of generation and transmission of power as stipulated by company law. At the same time, the company promoted its international activities, beginning with Germany in 1999. Also, by 2003, more than half of the personnel had been let go without notice.

In the 1990s, Austria's energy industry became the setting for a large number of mutual participating interests; thus, for example, the provincial energy providers TIWAG (Tyrol) and EVN (Lower Austria), as well as the Wiener Stadtwerke [de] (including energy provider WienEnergie [de]) increasingly acquired shares in Verbund. Currently these three companies, the majority share of each of which is also in public hands, own more than 25%. Verbund itself participated in EVN in form of a joint venture, however, discontinued this share package in 2003. Important participating interests in Austria today are Kelag [de] (Kärntner Elektrizitäts-Aktiengesellschaft) and STEWEAG-STEG GmbH [de].

In order to finance the restructuring and expansion of the Verbund Group, eight Austrian Danube power plants, among others, were leased in the period from 1997 to 2000 as part of a cross-border leasing agreement with an American financial company and leased back without property transfer. In 2009, the backtransaction of virtually all leasing transactions was decided and, for the major part, implemented that same year.

In mid-2005, Verbund established the business division of Sales and became active in Austria's end customer market selling electricity. Within but a few years, the company had advanced to the fifth largest end customer provider in Austria. In 2007, Verbund expanded its activities to include additional renewable energy sources and began to undertake large investments in especially wind power. In mid-2009, Verbund acquired a power plant chain on the Bavarian river Inn from energy company E.ON and, hence, advanced to fourth largest hydropower producer in Europe.

Austrian Power Grid AG, a 100% subsidiary of Verbund AG, disposes of the largest and strongest high-voltage grid in Austria comprising the voltage levels 380 kV with the 380 kV high-voltage ring, as well as the 220 kV and 110 kV levels and several grid facilities. Moreover, Austrian Power Grid AG (APG) is responsible for the technical management of control area APG, which includes all Austrian federal provinces except Vorarlberg; although there are specific plans of transferring the operation of the grid in Vorarlberg to Verbund.