There is no doubt. Energy conservation, together with renewable energy sources, are the two pillars of a climate-resilient energy system. Support for the energy modernization of buildings, the use of efficient devices, LED lighting and heat pumps should become and already are the main policy. However, one should not lose sight of the fact that energy, especially electrical energy, is a primary good and its use cannot be reduced beyond a certain limit, that is, it is inelastic. This does not detract from the importance of the rational use of energy (thermostats, insulation, efficient technologies, etc.). Consumer price subsidies for electricity have been implemented in Greece through a mechanism that returns to the consumer temporary excess revenues from electricity producers due to excessively high natural gas prices and dependence on marginal market prices. If windfall profits and excessive electricity prices persisted, we would simply have a reduction in consumer disposable income and excessive costs for businesses because they would be forced to pay excessive prices, effectively unable to save further energy as consumption approaches marginal levels. that it is inelastic.

Clearly, gas consumption must be reduced both for cost and efficiency reasons. But here, too, we have inflexibility. In the production of electricity, all the possibilities of production from other types of energy are first exhausted, and then electricity is produced from natural gas. In heating, the replacement of natural gas with heat pumps or oil requires replacement of the plant. The reduction of gas heating occurs mainly due to comfortable living in houses. Industry has already reduced its consumption of natural gas where it can be replaced by oil and other products.

There is no excessive use of electricity and natural gas in Greece.

In conclusion, I believe that, with exceptions, we do not have excessive use of electricity and natural gas in Greece. Clearly, austerity measures are needed. But it is a myth that a price subsidy reduces savings, but, on the contrary, simply prevents an unjustified reduction in the income of the population and business.

* Mr. Pantelis Kapros is Professor Emeritus of Energy Economics at NTUA.