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Greece gov’t announces electricity subsidies for October and natural gas

Environment and Energy Minister Kostas Skrekas announced the subsidies for electricity consumption for the month of October. The new support plan foresees a three-tier subsidy scheme depending on the kilowatt consumption by households. subsidies for natural gas have been also announced.

Starting prices for electricity in October have fallen to 14-16 cents per kilowatt hour, based on the price lists announced by power providers the minister said.

Subsidies will continue to cover all consumers and power connections, without income criteria, but from next month a three-tier system will be introduced, with higher subsidies for lower consumption levels and additional discounts to reward energy savings.

Subsidies for electricity in October are the following:

– For consumption of 0-500 kilowatt-hours per month, the subsidy is 43.6 cents per kilowatt-hour, covering 90% of the increase and 90% of households.

– For consumption of 501-1000 kilowatt-hours, a subsidy of 38.6 cents per kilowatt-hour (corresponding to 80% of the increase) which increases to 43.6 cents (as in the first tier) if consumption is reduced by at least 15% compared to the previous year.

– For consumption of 1001 kilowatt hours and above (applies to 2% of households), a subsidy of 33.6 cents per kilowatt hour. Likewise, if consumption is reduced by at least 15% compared to last year, the subsidy increases by 5 cents and reaches the previous level (38.6 cents).

– For the Social Residential Tariff, the subsidy is 48.5 cents per kilowatt hour.

Examples

A household with monthly consumption 400 KWh  will pay in the average (repenting on the supplier’s tariff) €238 without the subsidy. Last year he paid 44 euros.With the subsidy it will pay more 19.6 euros than last year.

A household with monthly consumption 600 KWh  will pay in the average (repenting on the supplier’s tariff) €357  without the subsidy. Last year he paid 66 euros.With the subsidy it will pay more 132.6 euros than last year. If last October consumption was 700KWh the household will also profit in further discount due to 15% less consumption and will pay 102.6 euros translating into 30 euros profit.

Examples source here in Greek

For natural gas, DEPA will give all household consumers a horizontal subsidy of 90 euros per MWh, which will cover roughly 50% of the rate increase. For businesses, the subsidy will be 40 euros per MWh.

Subsidies of natural gas for all commercial consumers and industry from the government will reach 40 euros per thermic MWh, regardless of size, turnover or number of employees in October.

Minister Skrekas also announced a 10-euro levy per MWh for power companies for natural gas used by units. The revenue will be used to support vulnerable households, investments in alternative fuels and an expansion of natural gas infrastructure that helps end dependence on Russian gas.

According to media, subsidy for heating oil is set at €0,20 per liter that is 0.25 including VAT at the station. The subsidy will be cashed by the refineries and fuel importers.

PS I wonder how one can reduce electricity consumption by 15% compared to October 2021, when meanwhile a household moved to a bigger house, was absent last year or whatever reasons make the comparison unjust. Furthermore, the electricity bills are issued every 2 or 4 months making impossible to find out how many KWh one used last year. Note also  that many households have decided to use electricity for heating in upcoming winter. Note that the heating period starts the earliest October 15 or beginning of November.

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2 comments

  1. The consumer will still pay the full cost. Without the subsidy they will pay it directly according to their usage. With the subsidy they will pay it indirectly through their taxes according to their income. The companies extracting fossil fuels from the ground do not pay 1 cent more in cost today than they paid one year ago. Every cent they charge more today is an extra cent of profit which will all go to the board and the shareholders of the companies. Chorus lyrics from an old music hall song, :

    It’s the same the whole world over,
    It’s the poor what gets the blame,
    It’s the rich what gets the gravy,
    Ain’t it all a bleeding shame.

    • Exactly, Warwick!
      We all ought to remember that subsidiaries are payed with our taxes, i.e. our “own” money! The money that should go to health service, infrastructure and so on… The more “support” in money you get the less goes to your health care for example….

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