Government prioritizes support for energy-intensive industry industry With subsidies about 50-70 euros/MWh, as pressure on their competitiveness began to be felt after the expiration of fixed price contracts with checkpoint in December 2022.

Jointly competent ministries after the joint intervention of the country’s nine industry associations on his issue. energy cost in a letter to Prime Minister Kyriakos Mitsotakis, and in the ensuing consultations with industry representatives, reportedly decided to continue with direct subsidies.

The minimum subsidy, according to the same information, is €50/MWh proposed by the Ministry of Finance, which is also the holder of the “keys” of the state fund, and the maximum subsidy is €70/MWh proposed by the ministry. environment and energy.

The total annual costs for energy-intensive high and medium voltage industries have been calculated on the basis of a €50/MWh subsidy of just under €200 million, and the relevant ministries are currently looking for funds by examining the fiscal margin of the state budget.

However, this measure is expected to be implemented immediately, with the relevant ministers also preparing a relevant law for inclusion in the first bill to be submitted to Parliament. The subsidy will last for a year and will last as long as natural gas prices are at a high level. The mechanism of direct subsidies directly from the state frees the energy-intensive industry from PPC for the first time, since until now any benefits have passed through its tariffs, and creates the ground for opening up competition in the high voltage area, where the PPC almost dominates. exclusively with a share close to 90%.

The jointly competent ministries raise funds by examining the budget margin.

The government is reportedly submitting legislation to parliament immediately to limit pressure on the competitiveness of domestic enterprises, which have been subject to erratic fluctuations in wholesale electricity prices since the beginning of the year. without the possibility of predictability, a factor that makes long-term contracts with its clients extremely risky. This problem was pointed out in a joint letter to the Prime Minister by the country’s nine industrial associations, led by SEV.

“The intensity of the problems, especially for small and medium-sized enterprises, as well as for the energy-intensive industry, is now taking on the dimensions of an existential risk,” the letter to the Prime Minister says, among other things, indicating additional inequalities that arise for the Greek industry in relation to the European for the fact that other EU Member States are implementing more and more effective measures to support their industry.

Disappointment in E.E.

The domestic industry recognizes the country’s limited financial support and is therefore disappointed with the plan announced by the EU. to respond to multi-billion dollar support packages from China and the United States, including the latest Inflation Reduction Act (IRA). “The US IRA, which offers significant incentives for industry to invest in the US, is putting pressure on Europe to act quickly and add stimulus,” said BSE President Dimitris Papaleksopoulos, addressing a business audience in Japan during the Prime Minister’s visit. . in Tokyo. In Europe, along with incentives to invest in the energy transition, there are also disincentives that impose costs on industry through the cost of emissions. On the contrary, the US has decided not to impose a penalty on emissions and does not act with a “carrot but a stick”, and given that the cost of energy in the US is also much lower, production there has become very competitive, Mr. Papaleksopoulos. said.

Eurometals

In the same vein, a few days earlier, in his New Year’s message to Eurometaux members, association president Evangelos Mytilineos emphasized: “The US Deflation Act has shown us all what an active industrial policy should look like.” continued to raise his tone: “We need more carrots and less sticks from European politics.”