Benefit up to 94% for households and up to 89% for businesses with the new electricity subsidy – Examples

A significant benefit arises for households and businesses with the implementation of electricity subsidies for September, according to estimates by the Ministry of Environment and Energy.

Specifically:

– A household with a consumption of 400 KWh/month without the state subsidy would pay 315 euros, while with the state subsidy the charge is reduced to 60 euros. Accordingly, a small and medium-sized enterprise with a power installation of up to 35 kVa, with a consumption of 2,000 KWh/month would pay without the state subsidy 1,600 euros, while with the state subsidy it would pay 392 euros.

– The subsidy on household tariffs for all main and non-main residence services, for all monthly consumption, without income criteria and regardless of provider (concerns approximately six million household services) is set at 639 euros/MWh.

– For small and medium enterprises with power supply up to 35kVA and for all bakeries regardless of power supply, the subsidy was set for September at 604 euros/MWh.

1.9 billion euros to subsidize electricity bills in September

According to what the Minister of Environment and Energy Kostas Skrekas announced on Tuesday morning, the total amount that will be allocated to subsidize electricity bills will reach 1.9 billion euros, absorbing almost the entire cost of the price jump of electricity, which comes as a consequence of the energy crisis, for a total of 6 million households and 1.2 million businesses.

Specifically in September, 94% of the increase will be absorbed by households with the subsidy reaching 639 euros/MWh.

The average monthly allowance for the Social Housing Tariff it amounts to 677 euros in September, absorbing almost 100% of the increase.

The total amount of the subsidy for households in September it amounts to 748 million euros.

For small and medium businesses with power supply up to 35kVA and for all bakeries regardless of power supply the subsidy is set for September at 604 euros/MWh absorbing 89% of the increase.

This measure concerns 1,250,000 professional business benefits such as restaurants, shops, kiosks, convenience stores, hair salons, offices, bakeries etc and estimated at 401 million euros for September.

For all other commercial and industrial supplies with power > 35kVA the subsidy amounts to 342 euros/MWh.

K. Skrekas also announced the creation, from September, of a permanent risk compensation mechanism, which will be fed by a new reserve account. A levy will be directed to him which will be included in YKO bills and will not exceed 1 minute/KWh for residential consumers.

With this hedging tool, according to the minister, “we shield and protect the Greeks from future painful energy crises”.

In detail, Mr. Skrekas stated:

“According to all the data taking shape today in the geopolitical and economic field, we are going to have a winter full of challenges and difficulties in terms of supply adequacy and energy prices. The successive statements of European leaders and the measures taken throughout Europe, with prime examples of what is happening in Germany and France, leaves no room for illusions.

The ongoing war is dramatically worsening the energy crisis, and recent announcements by Gazprom that it will completely stop the flow of natural gas for three days due to maintenance, from August 31 to September 2, further exacerbates the problem, resulting in gas prices yesterday to move above 270 euros/MWh.

In Greece, in this unfavorable environment, we provided timely and effectively, moving in two directions. Ensuring the adequacy of supply in natural gas and electricity and creating an integrated network of actions for the practical support of households and professionals in the face of supplied energy precision. We achieve these, moving along three axes:

1- Putting into force new regulatory measures, such as the mechanism for recovering excess revenues from electricity production, transparency in the prices announced by suppliers and facilitating consumers to change supplier free of charge.

2- Promoting an ambitious program of infrastructure and actions, such as the new floating reservoir in Revythoussa, the new floating liquefied natural gas gasification terminal in Alexandroupoli, the leapfrog increase in Renewable Energy Sources and the doubling of lignite production.

3- Creating the Energy Transition Fund, in order to take financial support measures for all households and professionals on a monthly basis.

Already during the first 41 days of operation of the New Mechanism for the recovery of excess revenues from electricity production companies, we collected 1 billion, 21 million euros which were directed to the Energy Transition Fund to strengthen subsidies to consumers.

At the same time, we are creating from September, a permanent hedging mechanism, which will be fed by a new reserve account. A levy will be directed to him which will be included in YKO bills and will not exceed 1 minute/KWh for residential consumers. With this hedging tool, we shield and protect Greeks from future painful energy crises. At the same time, however, we are also proceeding with the rationalization of HYCO charges, as we reduce up to 70% the burden on household tariffs that have increased electricity consumption, because – for example – they have replaced oil or natural gas with electricity for their heating. It should also be taken into account that with the completion of the large interconnection of Crete, the YKO charges will be reduced.

It is understandable that we are going through a period of international crisis that has pushed energy prices across Europe to unprecedented levels, as a result of which the social cohesion of the European states, and therefore of our country, is threatened. For this reason, the commitment of our Government and Prime Minister Kyriakos Mitsotakis for a safety net that will help Greek consumers to deal with these exceptional situations continues in the month of September.

Specifically for this month the Government will allocate 1.9 billion eurosto subsidize electricity bills for households and businesses.

Subsidy to Households

The subsidy applies to all main and non-main residence benefits, for the entire monthly consumption, without income criteria and regardless of provider. It concerns about six million household supplies.

• Specifically in September we absorb 94% of the increase in households with the subsidy reaching 639 euros/MWh.

• The average monthly support for the CTO it amounts to 677 euros in September, absorbing almost 100% of the increase.

The total amount of the subsidy for households in September, it amounts to 748 million euros.

Subsidy on non-Household Tariffs

For small and medium businesses with power supply up to 35kVA and for all bakeries regardless of power supply the subsidy is set for September at 604 euros/MWh absorbing 89% of the increase.

This measure concerns 1,250,000 professional business benefits such as restaurants, shops, kiosks, convenience stores, hair salons, offices, bakeries etc and estimated at 401 million euros for September.

For all other commercial and industrial supplies with power > 35kVA the subsidy amounts to 342 euros/MWh.

For the Agricultural Tariff the subsidy is determined at 639 euros/MWh absorbing 90% of the increase.

A simple reading of the numbers demonstrates the enormous effort being made by the Government, which is exhausting every financial possibility, in order to contain energy costs and protect the income of citizens, in the face of an energy crisis of unprecedented magnitude and unknown duration that affects the entire Europe.

We are determined to continue this policy of protecting consumers, which is made possible by the prudent and effective economic policy we follow and the citizen support mechanism we have put in place.”