According to available data, electricity prices are expected to decline in December. It is reported that in a few days, when electricity prices are announced by suppliers, they will be at a much lower level, more precisely, they will be set at 33-35 cents per kilowatt-hour, without discounts from the government.
So far in November, the lowest price per kilowatt-hour is 37 cents per kilowatt-hour (excluding subsidies). This automatically means that if the preliminary information is confirmed, then in December electricity prices per kilowatt-hour will be reduced by 10-15%. As it happens every month, the prices are announced by the suppliers, and then the Minister of Environment and Energy, Kostas Skrekas, announces subsidies and a general fund to show how the new electricity prices will be formed.
What’s hot in November?
The tiered subsidy for November has the following structure.
- For monthly consumption up to 500 kWh, the subsidy is 238 EUR/MWh. This applies to 90% of households in Greece.
- For monthly consumption of 501-1000 kWh, the subsidy is 188 EUR/MWh. However, if a household reduces its average daily consumption by 15% compared to last year, the subsidy will increase by €50/MWh.
- For monthly consumption over 1001 kWh, the subsidy is 98 EUR/MWh. This concerns only 2% of households in Greece. And in this scale, an additional subsidy of 50 €/MWh is applied with a 15% reduction in consumption.
- In households included in the Household Social Tariff (KOT), almost 100% of the price increase is covered and the subsidy is 286 EUR/MWh.
The amount of the subsidy for households in November is 270 million euros.
Electricity – commercial tariff subsidy
- For commercial customers up to 35 kVA and up to 2000 kWh, the subsidy for November is 200 EUR/MWh.
- For professional and commercial consumers up to 35 kVA that exceed 2000 kWh, as well as for all other low-medium and high-voltage non-domestic tariffs, the subsidy is 50 EUR/MWh.
- For farmers, the subsidy is horizontal and amounts to 238 EUR/MWh.
The total amount of the electricity subsidy in November is 430 million euros. Most of the amount comes from an innovative mechanism for recovering excess revenue from electricity producers, which the Greek government has implemented since July last year and has generated more than 2.3 billion euros to date. As Mr. Skrekas mentioned, a specific mechanism has been adopted by Europe for application in all Member States.
In the coming days, a law on a new mechanism for reimbursing overpayments for electricity will be submitted to parliament. Already paid funds after recalculation will be returned to the accounts of households and enterprises.