Prime Minister Kyriakos Mitsotakis announced on Thursday evening a package of relief measures for households and businesses with the aim to tackle the soaring energy prices and to calm down an increasing social anger.
In his televised message the Prime Minister announced a program of four key points that includes a rebate of 60% for electricity subscribers and the practically cancelling of the “adjustment clause” that has burdened the citizens with electricity bills they cannot afford to pay.
Smart words by wise men?
PM Mitsotakis: “The cheapest energy is the one never consumed.”
The relief measures are:
• Homeowners and tenants will receive a rebate of 60% on the extra charges they paid for their electricity from December 2021 to May 2022
The refund will have a cap of 600 euros, it will apply to households with an annual income of up to 45,000 euros and for the main residence only..
“The refund will be paid directly to the bank accounts of electricity customers,” the PM said.
Furthermore, households will receive a 50% rebate for any increase in consumption of over 300 KWh for May and June 2022. the rebate will include also not main residence.
• The extra profits of power companies made during the energy crisis will be taxed at 90%. Revenues will be spent for the relief of households and businesses.
• “Regardless of European decisions, the Greek government, on its own initiative, will launch a system in July that will decouple international gas increases from the country’s electricity bills. This scheme will operate for up to one year,” Mitsotakis said.
He added that this scheme practically cancels the adjustment clause.
• The subsidy program to replace old and energy consuming A/C and refrigerators will be implemented in the following week. Also a scheme for businesses to install solar panels on the roofs of their buildings will be implemented. The scheme is due in autumn.
The ministers of finance and energy will give more details on the support measures tomorrow, Friday.
PS a few first thoughts:
1. I see no effective rebate measures for businesses
2. 60% rebate December – May and a cap of 600 euros means that citizens will receive a compensation of up to 100 euros per month.
It’s all about how politics wraps up a thin package of X. Y. support measures with clever words and syntax.
Not to mention that government sources were recently leaking to the press that the measures will be horizontal for everyone.