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Greek gov’t increases subsidy for households burdened by energy hikes

The Greek government announced on Friday a package of additional funds to ease the financial burden on households and protect them from further increases in electricity and natural gas prices. The package includes measures such as doubling the amount of subsidy for electric power, additional reductions for households also in the so-called “social tariff” for electricity bills, discounts for electricity and natural gas. The funds totals 500 million euros.

Presenting the measures, Environment and Energy Minister Kostas Skrekas said that they created an efficient protection shield for society, along with a permanent damping mechanism against energy price increases.

The discount on electricity bills will double to 18 euros per month for an average household, reaching up to 24 euros. The cost of the measure amounts to 326 million euros.

A further increase in aid is not ruled out, if necessary, the minister said..

The government also expanded the income criteria for the heating allowance (heating oil, natural gas, LPG, pellets, firewood) and it will include more than 1 million households.

The allowance will be increased by 36% for households without children to 68% for households with three children. The average increase of the subsidy for a family of four is 59%.

The minimum subsidy will rise to 100 from 80 euros, while the maximum from 650 to 750 euros.

Doubling of subsidy of electricity bills in the period from September to December, is fom 30 euros to 60 euros per MWh for consumption of up to 300 kWh per month. The subsidy is raised from 9 to 18 euros per month. The PPC will offer additional discounts for electricity consumption between 300-600 kWh per month, beyond a 30% discount offered since August.

the Energy ministry recommended to alternative electricity suppliers to make similar moves.

For households included in the “social tariff” billing system the subsidy is set at 80 euros per MWh or 24 euros per month. Natural gas Commerce DEPA will offer a 15% discount to suppliers to be rolled over to household consumers.

The Energy Minister stressed that the subsidy system will be re-evaluated after 1-2 months to make any necessary adjustments.

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