What the government is proposing regarding the “tsunami” of price increases

The financial bodies of the government intend to provide support to citizens, to protect them from a price jump that destabilizes the market.

In this context, an increase in the property criteria to 30% is being considered with the aim of increasing the number of recipients of the heating supplement in order to solve the problem of the increase in electricity costs in connection with the start of the sale of heating oil from 15 October.

This means that the ceiling for singles from 12,000 euros will reach 16,000 euros, for married people from 20,000 euros to 26,000 euros, and for single-parent families the income criteria will increase from 22,000 to 28,000 euros. The supplement for each child after the first will also be increased, as expected from 2000 to 3000 or 4000 euros.

Prices are rising for both electricity and gas and oil, making it increasingly difficult for the average citizen to survive. Therefore, alternatives to winter heating are limited, and finance staff is preparing to invest additional money to reduce the burden of price increases.

According to market participants, the selling price for heating oil this year will be 40% higher than last year.

In Athens and Thessaloniki, the price will be close to € 1.05-1.10 / liter, while in the region the price will be € 1.15-1.20 / liter, and on the islands, it is likely to rise to more than 1. 20 euro / liter.

The rise in gas prices will be even greater, by about 100%. These developments pose a huge problem for consumers as they cannot meet their heating needs in winter.

In response to price increases, the government will increase the amount used to finance heating allowances. The bill reached 100 million euros last year, and now, after the increase, the final amount is expected to reach 150 million euros. The information says that the basic benefit will rise to 264 euros from 220 euros last year, as the total amount to be allocated from the budget for the 2021-2022 season will exceed 100 million euros from 90 million euros. Thus, the amount of their allowance from 80 to 650 euros, which was last year this year, will be from 96 to 780 euros.

In fact, the state will face another problem associated with the increase in objective prices. The calculation of the heating surcharge is based on the objective value of the beneficiaries’ real estate, which creates a risk for thousands of taxpayers who may see, without changing their property status, that the limit of their property exceeds the specified criteria and, accordingly, lose heating benefits (subsidies).

Beneficiaries
The beneficiaries are not only those who consume fuel oil to heat themselves, but also households using natural gas, as well as consumers living in settlements with more than 2500 inhabitants and heated with wood and pellets.

In relation to the recipients of the heating allowance in the previous period were:

1. Unmarried or married or widowed individuals or persons who have entered into a cohabitation agreement or are divorced, who use heating oil, natural gas, LPG, wood or biomass to heat their premises. Especially for married people or persons who have entered into a cohabitation agreement, the beneficiary is the person who is required to file an income tax return, or one of two people, if they file a separate return.

2. The aforementioned individuals, for the consumption of subsidized fuels, in relation to the property they use as their primary residence at the time of application, whether they are renting it out, provided free of charge (hospitality) or are privately owned … Especially for the provision of a heating surcharge to consumers of firewood and biomass (pellets), an additional condition is that the property is located in a settlement with a population of no more than 2500 people and the corresponding subsidy coefficient is equal to or greater than 0.8.

Recall that the criteria for granting a heating surcharge this year have not changed and are as follows:

a. Income:

The total annual income of the beneficiary family must be € 12,000 per single person or widower; € 20,000 for a married debtor or married persons without children, which is increased by € 2,000 for each child. For single-parent families, the specified income is 22,000 euros, which is increased by 2,000 euros for each subsequent child after the first.

b. Real estate:

The total value of the property, as determined for the calculation of the 2020 supplementary ENFIA, must not exceed 130,000 euros for unmarried or widowers; € 250,000 for married or cohabitants and single-parent families. …



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