K. Mitsotakis: cheap electricity for all farmers over the next 2+8 years

Prime Minister Kyriakos Mitsotakis, during a meeting with representatives of the Panhellenic Committee of Blockade Farmers at the Maximou Mansion, announced a reduction in the cost of electricity for all farmers for the next 2+8 years.

An initiative that is thorough and responsible, providing very low electricity prices for agriculture, is estimated to result in a KW of below 10 cents in the first 2 years for farmers who participate in co-operative schemes or are consistent, and below 11 cents for those who have overdue debts, while they will also pay off their debts. Over the next 8 years, ⅓ of consumption will have an expected price of 9 cents. In this way, all farmers will be able to plan for a ten-year period.

This bold move by the government, which follows already announced measures to reduce electricity charges in rural areas, will be mainly financed from the Energy Transition Fund:

1. From April 1, a program of low prices for rural electricity is launched in the form of bilateral long-term contracts. The program can be offered by all electricity suppliers and all owners of rural electrical connections, that is, the entire rural population, can participate in it. The program conditions are as follows:

Estimated Prices: For the first two years with tariffs starting 04/01/2024, prices are fixed and are (maximum) the following:

1. Owners of agricultural electricity networks that are part of cooperative schemes or practice contract farming without overdue debts: 9.3 cents per kilowatt-hour.

2. Other owners of agricultural electric networks without overdue debt: 9.8 cents per kWh.

3. Owners of agricultural electricity networks included in cooperative schemes or practicing contract farming with overdue debt: 10.5 cents per kWh.

4. Other delinquent agricultural utility owners: 11 cents per kilowatt-hour

These prices refer to the total consumption of specific goods. For the remaining 8 years, for 1/3 of the benefit consumption, the price is uniform and amounts to 9 cents per kWh.

For the remaining part of consumption (2/3), the owners of rural electricity networks are not bound by any obligations and can freely buy electricity on the market (freely from the same or another supplier). Relevant contracts are recorded with appropriate provisions.

Suppliers participating in the program will receive priority connections to specific renewable energy projects supporting the program. This program replaces the long-term bilateral contract program for cooperatives and farms announced by the Ministry of Environment and Energy.

2. Owners of rural electricity networks with overdue debts can settle their debts to electricity suppliers with repayment within ten years and zero interest rate. The corresponding financial costs are borne by the state with financing from the Energy Transition Fund.

At the same time, the Prime Minister announced an early refund of the special tax on agricultural oil consumption (in the amount of 82 million euros), which will amount to 40 million euros at the end of March. The corresponding provision will be immediately submitted to Parliament for consideration.

Kyriakos Mitsotakis announced that the government is ready to start a dialogue on a fairer way of VAT refunds from 2025 onwards, with elements of a permanent approach on how the refund amount is distributed, who will receive it and when.

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