Greek government announces electricity and natural gas subsidies for October

Minister of Environment and Energy Kostas Skrekas announced subsidies for electricity consumption for October.

The new support plan provides three-level scheme subsidies, depending on the number of kilowatts consumed by households. Subsidies for natural gas were also announced.

Starting electricity prices in October fell to 14-16 cents per kilowatt-hour, based on price lists announced by electricity suppliers, the minister said.

The subsidies will continue to cover all consumers and those connected to the grid, with no income criteria, but a three-tier system will be introduced from next month, with higher subsidies for low consumption levels and additional discounts to encourage energy savings.

Subsidies for electricity in October will be as follows:

• For consumption of 0-500 kilowatt-hours per month, the subsidy is 43.6 cents per kilowatt-hour, covering 90% of growth and 90% of households.
• For consumption of 501-1000 kilowatt-hours, the subsidy is 38.6 cents per kilowatt-hour (corresponding to an 80% increase), which increases to 43.6 cents (as in the first level) if consumption is reduced by at least 15 % compared to the previous year.
• For consumption of 1,001 kilowatt-hours or more (applies to 2% of households), the subsidy is 33.6 cents per kilowatt-hour. Similarly, if consumption is reduced by at least 15% from the previous year, the subsidy is increased by 5 cents to the previous level of 38.6 cents.
• For the social tariff for the population, the subsidy is 48.5 cents per kilowatt-hour.

Examples

A household with a monthly consumption of 400 kWh will pay on average (including the supplier’s tariff) 238 euros without a subsidy. Last year he paid 44 euros. With the subsidy, he will pay 19.6 euros more than last year.

A household with a monthly consumption of 600 kWh will pay an average (at the supplier’s tariff) 357 euros without a subsidy. Last year he paid 66 euros. With the subsidy, he will pay 132.6 euros more than last year. If last October the consumption was 700 kWh, then the household will also receive an additional discount by reducing consumption by 15% and pay 102.6 euros, which is 30 euros of profit.

Source of examples here in Greek

For natural gas, DEPA will provide all residential customers with a horizontal subsidy of €90 per MWh, covering approximately 50% of the tariff increase. For enterprises, the subsidy will be 40 euros per MWh.

Natural gas subsidies for all commercial consumers and industry from the government will reach 40 euros per thermal MWh in October, regardless of size, turnover or number of employees.

The minister also announced the introduction of a fee of 10 euros per MWh for energy companies for the natural gas used by power units. These revenues will be used to support vulnerable households, invest in alternative fuels and expand gas infrastructure, which could theoretically help end dependence on Russian gas.

According to media reports, the subsidy for heating oil is set at 0.20 euros per liter, which is 0.25 including VAT. The subsidy will be cashed in by refineries and fuel importers.

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