Greek Government Announces Subsidies to Offset Rising Electricity Costs

Environment and Energy Minister Theodoros Skylakakis announced that all households will receive subsidies for their electricity bills in August, limited to a consumption of 500 kilowatt hours per month.

The subsidy amount will be determined by the "green" tariffs announced at the beginning of each month, aiming to keep prices at manageable levels.

The subsidies will be financed through an extraordinary levy on natural gas imposed on power producers. Key measures include:

1. Reinstatement of Tax: The tax on electricity production using natural gas, previously implemented during the energy crisis, will be reinstated for at least July and August. The exact amount will be determined shortly.

2. Household Tariff Subsidies: Subsidies will cover household tariffs, including social tariffs, for August. The exact subsidy amount will be finalised based on wholesale prices and August tariffs. The subsidy is targeted at households with floating-rate electricity plans and consumption up to 500 kilowatt hours per month, aiming to maintain prices at 2023 levels.

3. Market Price Interventions: Provisions will be established to allow for price interventions in cases of market distortions.

4. Business Debt: Businesses will not receive refunds for debts from the Special Duty for the Reduction of Air Pollutant Emissions (ETMEAR), estimated at 138 million euros.

5. Support for Farmers: Farmers will also benefit from the Special Duty for the Reduction of Air Pollutant Emissions (ETMEAR).

Minister Skylakakis emphasised the government's commitment to protecting consumers during economic challenges. "When there is a need, the government intervenes to help consumers by exhausting all available margins. We will not leave consumers unprotected," he stated.

(Source: Amna)