Saturday , July 13 2024
Home / News / Economy / Greece heavily cuts down electricity subsidy in February

Greece heavily cuts down electricity subsidy in February

State subsidy on household electricity tariffs for February, for 90% of consumption up to 500 KWh per month was set at 4 cents per kilowatt hour or 40 euros per megawatt hour,  Greece’s Energy Minister announced on Tuesday.

For higher consumption over 500 Kwh, the subsidy is linked to energy saving of 15% compared to corresponding period last year, Minister Kostas Skrekas added.

In real life, this means that the government has reduced the subsidies extended to consumers grappling with high energy costs to 95 million euros in February from 840 million euros in January or down to 40 euros from 330.

The government has spent around 8.2 billion euros so far to help households and businesses pay their electricity, gas and heating fuel bills which soared last year following a spike in energy prices in the wake of the Ukraine war.

For so-called ‘social tariffs” household the subsidy will be 88 euros. the minister said..

There will be no subsidy for natural gas, because as the minister pointed out, this is a period when natural gas prices are drastically falling globally, which is also a result of the adoption of the European mechanism for a cap on natural gas prices.

Skrekas added that the crisis has eased but is not over and that the government has pledged to stand by consumers as long as the volatility lasts.

whatever the Minister says fact is that many households in the country use electricity for heating this winter and will do so in February and March

Check Also

French participant killed at AEGEAN600 sailing race incident

A 40-year-old French woman died after falling overboard into the sea during a the International …