Electricity Tariffs: Which Colour Suits You After July's Big Increase

The average wholesale price of electricity rose almost 40% in July compared with June, a figure that is causing panic among households and businesses who are worried about how much they will have to pay in August.

Business owners are in despair after the latest announcements from the Ministry of Environment and Energy, which is depriving them of state subsidies. “They will not receive a kilowatt-hour subsidy, because it requires the approval of the European Commission. The situation is different in tariffs for the population,” says energy inspector Michalis Christodoulides on the MEGA channel.

“Yesterday evening, a bill was submitted to the competent committee of parliament, according to which a special fee of 10 euros per megawatt hour is levied on electricity producers who burn natural gas to produce electricity. According to rough estimates, the government will be able to collect about 44 million euros in its “piggy bank”. But that's all, it is impossible to collect more. There are about 5.5 million household consumers in our country who are subject to sliding tariffs. If we divide 44 million by 5.5, we get an average benefit for each consumer of 8 euros.”

As is known, up to 500 kilowatt-hours, i.e. typical consumption, 1.5-1.6 kilowatt-hours are subsidized. “Of course, in July and August, consumption increases due to the use of air conditioners, and an ordinary household that previously consumed 500 kilowatt-hours in winter or spring can now reach 600 and 700,” notes Mr. Christodoulides.

In August, he added, July consumption will be included in the bills (with an increase of about 35-36% or even up to 50%). I think the price will probably go from 16.5 to 19 cents.”

Asked if the colour balance would change, Mr Christodoulides said it appeared that “The most advantageous tariffs are yellow ones with a three-month validity and a fixed price, since blue tariffs will not be subsidized, the ministry said.“.

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