Impressive 57% increase in electricity subsidy – Detailed examples, how much we will pay with the new subsidies

By Haris Fludopoulos

For the month of July, the government had announced a subsidy of 200 euros/MWh covering 84% of the increase due to the energy crisis. The total amount of subsidies for the current month reaches 722 million euros.

Yesterday the new electricity subsidies were announced, which increased by an impressive 57% as 1.136 billion euros will be allocated. The horizontal subsidy is at 337 euros/MWh from 200 euros/MWh, and according to the calculations of the Ministry of the Interior, 90% of the increase is covered for all consumers, while for individual categories such as CTO beneficiaries the coverage reaches 100%.

Along with the subsidies, however, the tariffs that will be applied by the providers for the month of August and which will not include an adjustment clause, as provided for based on the latest legislation, were made public yesterday.

According to the announced tariffs, with slight variations per company, the average price for residential consumers is close to 0.50 euros/KWh, which means that with the subsidy the price drops to 0.163 euros/KWh.

Practically with a fee of 0.5 euros/KWh a household with a consumption of 300 KWh/month the cost is structured as follows:
Invoice without the subsidy: 150 euros
Subsidy: 101.1 euros
Final cost after subsidy: 48.9 euros

For a larger household always with a charge of 0.5 euros/KWh and a consumption of 1000 Kwh/month, the cost is structured as follows:
Invoice without the subsidy: 500 euros
Subsidy: 337 euros
Final cost after subsidy: 163 euros

That is, compared to the price without the subsidy, the final price that the consumer will pay is reduced by 67.4%

It is worth noting that based on the providers’ tariffs that have been announced, the prices range between 0.48 and 0.55 euros/KWh. This means that the final price with the subsidy varies between 0.143 and 0.213 euros/KWh. Before the crisis, the basic tariff was at 0.11 euros/KWh, which means that the increase starts from 30% but can reach up to 93% depending on the provider’s charge.

However, it should be noted that among yesterday’s announcements, one provider (Elpedison) chose to give a significantly increased price compared to the competition, adding an additional discount on the condition that the actual market price does not exceed 370 euros/MWh . However, if this discount is applied, the price of the specific provider fluctuates within the range of the rest of the market.

Detailed invoices

But what are the provider prices that were announced yesterday and will be effective in August?

PPC with the largest market share in supply announced a price of 0.486 euros/KWh for consumptions up to 2000KWh, while for over 2000KWh the price increases to 0.498 euros/KWh. Night consumption is 0.445 euros/KWh, while the company’s fixed rate is 3.5 euros/month. This means that with the subsidy the price moves from 0.149 to 0.161 euros/KWh.

Protergia with a fixed price of 5 euros/month announced a price of 0.54913 euros/KWh and a night charge of 0.54555 euros/KWh. With the subsidy, the company’s tariff is set at 0.21213 euros/KWh.
Heron announced a price of 0.495 euros/KWh with a fixed price of 9.9 euros/month, which increases to 17.9 euros/month for consumptions from 801/1400KWh, to 24.9 euros/month for consumptions from 1401-2000KWh and to 29, 9 euros/month for consumptions over 2000KWh. With the subsidy, Heron’s charge is 0.158 euros/KWh.

Elpedison announced a price of 0.9395 euros/KWh, which, however, was calculated with an energy purchase cost of 738 euros/MWh. If the market price is 370 euros/MWh then a discount of 0.4439 euros/MWh is applied, which together with the subsidy of 0.337 euros/MWh leads to a final price of 0.1586 euros/MWh.

NRG announced a price of 0.548 euros/MWh for the plans with a fixed price of 4.8 euros/month and 0.499 euros/MWh for the plan with a fixed price of 5.5 euros/month. The final price after the subsidy is 0.211 euro/MWh and 0.162 euro/MWh respectively.

Watt + Volt announced a price of 0.585 euros/KWh for the ZerO plan, a price of 0.379 euros/KWh for the Watt + Volt Win 1 plan (with a fixed price of 29.9 euros/month) and a price of 0.477 euros/KWh for the Watt + Volt plan 2 (fixed 14.9 euros/month). This means that with the subsidies the company’s prices will be 0.248 euros/KWh, 0.042 euros/KWh and 0.14 euros/KWh respectively.

The Natural Gas Hellenic Energy Company announced a price of 0.484 euros/KWh with a fixed price of 8 euros/month (4 euros/month with a double play discount). For the company, the price after the subsidy is 0.147 euros/KWh.

ZeniΘ announced a price of 0.519 euros/KWh with a monthly fixed price of 4.5 euros (4 euros for Dual Energy customers). With the subsidy, the final price for the company is 0.182 euros/KWh.