September electricity subsidies to households and businesses at 1.9 billion euros

The amount of government subsidies for electricity for the month of September reaches 1.9 billion euros, according to what the Minister of Environment and Energy Kostas Skrekas announced a while ago, in order to support households and businesses.

In particular, according to the Ministry of the Interior, the subsidy applies to all main and non-main residential power bills, for the entire monthly consumption, without income criteria and regardless of the provider. It concerns about 6 million household supplies.

As he said:

• Specifically in September we absorb 94% of the increase for households with the subsidy reaching 639 euros/MWh.

• The average monthly aid for the CTO amounts to 677 euros in September, absorbing almost 100% of the increase.

The total amount of the subsidy for households in September amounts to 748 million euros.

Businesses and Farmers

For small and medium enterprises with a power supply of up to 35kVA and for all bakeries regardless of power supply, the subsidy is set for September at 604 euros/MWh, absorbing 89% of the increase.

This measure concerns 1,250,000 business services such as restaurants, shops, kiosks, convenience stores, hairdressers, offices, bakeries, etc. and is estimated at 401 million euros for September.

For all other commercial and industrial supplies with power > 35kVA the subsidy amounts to 342 euros/MWh.

For Agricultural Bills, the subsidy is set at 639 euros/MWh, absorbing 90% of the increase.

“A simple glance of the numbers demonstrates the enormous effort made by the Government, which is exhausting every financial possibility, in order to contain energy costs and protect the income of citizens, in the face of an unprecedented and of unknown duration energy crisis that affects the whole of Europe”, stressed Mr. Skrekas.

A difficult winter ahead

Mr. Skrekas spoke of a very difficult winter.

“According to all the data shaping up today in the geopolitical and economic field, we are going to have a winter full of challenges and difficulties in terms of supply adequacy and energy prices. The successive statements of the European leaders and the measures taken throughout Europe, with the leading examples of what is happening in Germany and France, leave no room for illusions.

The ongoing war is dramatically worsening the energy crisis, and recent announcements by Gazprom that it will completely stop the flow of natural gas for three days due to maintenance, from August 31 to September 2, further exacerbates the problem, resulting in gas prices yesterday moving above 270 euros/MWh”.

Action on three axes for the energy crisis

He went on to say that “in Greece, in this unfavorable environment, we provided timely and effectively, moving in two directions. Ensuring the adequacy of supply in natural gas and electricity and creating an integrated network of actions for the practical support of households and professionals in the face of supplied energy precision.

We achieve these, moving along three axes:

Enacting new regulatory measures, such as the mechanism for recovering excess revenues from electricity production, transparency in the prices announced by suppliers and facilitating consumers to switch suppliers free of charge.

Promoting an ambitious program of infrastructure and actions, such as the new floating reservoir in Revythoussa, the new floating liquefied natural gas gasification terminal in Alexandroupolis, the hug leap in Renewable Energy Sources and the doubling of lignite production.

Creating the Energy Transition Fund, in order to take financial support measures for all households and professionals on a monthly basis”.

Recovery of excess revenue

Mr. Skrekas noted that: “Already during the first 41 days of operation of the New Mechanism for the recovery of excess revenues from electricity production companies, we collected 1 billion, 21 million euros which were directed to the Energy Transition Fund to strengthen subsidies to consumers.

At the same time, we are creating from September, a permanent hedging mechanism, which will be fed by a new reserve account. A levy will be directed towards this mechanism which will be included in utility bills and will not exceed 1 minute/KWh for residential consumers. With this hedging tool, we shield and protect Greeks from future painful energy crises. At the same time, however, we are also proceeding with the rationalization of utility charges, as we are reducing by up to 70% the burden on household bills that have increased electricity consumption, because – for example – they have replaced oil or natural gas with electricity for their heating. It should also be taken into account that with the completion of the large interconnection with Crete, utility charges will be reduced.”