In March, a subsidy on the electricity tariff of 40 euros per megawatt hour will be set, Minister of the Environment and Energy Kostas Skrekas said.

In particular, for all basic and non-basic benefits at the place of residence, without income criteria and regardless of provider:

• For monthly consumption up to 500 kWh, the subsidy will be 40 EUR/MWh. This category includes 90% of households in Greece.
• The same subsidy will be given to persons with a monthly consumption of more than 500 kWh, provided that they reduce their average daily energy consumption by 15% compared to the previous year.
• For households included in the Social Household Tariff (COT), the subsidy is 84 EUR/MWh.
• For farmers, the subsidy is 40 EUR/MWh.

Examples

• A household with an average monthly consumption of 400 kWh/month without the subsidy would pay 78 euros, and with the subsidy it would end up paying 62 euros.

• A household with an average monthly consumption of 700 kWh/month will pay 136.5 euros without a subsidy, and with a subsidy (up to 500 kWh) will end up paying 116.5 euros. If he reduces consumption by 15%, he will pay 108.5 euros.

• A household with an average monthly consumption of 1200 kWh/month will pay 234 euros without a subsidy, and with a subsidy (up to 500 kWh) will end up paying 214 euros. In addition, if he reduces his consumption by 15% compared to last year, he will pay 186 euros.

It is worth noting that in March, commercial consumers and professionals will not receive a subsidy for paying electricity bills.

Diagram of an energy-intensive industry

Mr. Skrekas also noted that the aid plan is planned in line with a temporary state aid program to support the economy after Russia’s attack on Ukraine.

The beneficiaries are energy-intensive enterprises, including sectors and sub-sectors that are considered particularly vulnerable to loss of competitiveness due to the energy crisis, tentatively, steel, cement, aluminum, ceramics, textiles, paper, glass, etc.

These industries were not required to enter into fixed rate contracts for more than 12 months and would not enter into bilateral contracts for physical supply with power generators.

The condition of the subsidy is that an increase in the cost of electricity results in a 40% reduction in operating margins or negative operating margins for these activities.

Subsidies for photovoltaic and solar water heaters

“The government continues to support electricity consumers for the 19th month. Prime Minister Kyriakos Mitsotakis remains committed to protecting society from the huge energy crisis affecting all of Europe. This political choice of ours has kept Greek men and women away from the extremely painful consequences of a crisis that has tested the endurance of other European societies. “For this winter, we have secured the country’s energy supply, built new energy alliances, created tools and mechanisms to stop the crisis, such as the Energy Transition Fund,” Mr. Skrekas said.

Referring to the green transition, the minister stated that “we are strengthening the policy, which we have been implementing since the beginning of our term, to switch to green energy, which will be available to consumers at affordable prices. We are accelerating the penetration of renewables into our energy mix, multiplying infrastructure across the country, and promoting energy democracy through innovative programs to subsidize rooftop photovoltaic installations and immediately replace electric water heaters with modern solar ones.”

Source: Moneyreview