An agreement on the basic principles of the new mechanism, which will be implemented from July in order to lead to a de-escalation of electricity prices was reached today in Brussels after the meeting of the Minister of Environment and Energy, Costas Skrekas and the Secretary General of Energy & Minerals, Alexandra Sdoukou with Energy Commissioner Kadri Simson and Director General of Energy Ditte Juul Jorgensen.
“Today we have taken a very important step, with the initial agreement on the new mechanism that will be implemented in the electricity market from July”, said the Minister of Environment and Energy, Costas Skrekas and added: “As we have committed, we will continue to support the “Households and businesses for as long as the unprecedented energy crisis lasts. The new mechanism, combined with horizontal subsidies on electricity bills, will create an effective safety net for society experiencing explosive energy price hikes.”
At the meeting, an agreement was reached on the basic principles of the new mechanism, which will lead to de-escalation of high electricity prices for consumers. In particular, the two sides agreed on the following:
Next week, a draft legislature will be sent to the European Commission outlining how the mechanism works.
· The mechanism will not affect the terms of the common European electricity market.
· A ceiling is provided for the compensation of electricity generation units based on the actual cost of their production.
· The difference between the compensation and the stock market price of electricity will be transferred to the Energy Transition Fund (TEC) and will be committed to financing consumer support measures to offset the effects of the international energy crisis.
· The new mechanism achieves the disconnection of high gas prices with electricity prices to consumers.
· The National Support Program for the energy crisis announced by the Prime Minister, Kyriakos Mitsotakis, provides for the imposition of an indirect ceiling in the retail market, with the additional subsidy of the accounts.
· From May the subsidies are valid for all the houses, main and non-main, without income criteria and for the whole consumption.
Despite adverse developments in international energy markets, which are being fed back by the Russian invasion of Ukraine, the government will continue to support households and businesses from large increases in energy costs, exhausting all margins.
The European Commission’s proposals for the REPowerEU project were widely discussed during the meeting. The Greek side also called for increased resources to support households and small and medium-sized enterprises from the effects of the energy crisis.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.