Economy

Electricity: What the agreement with the EU provides for the support mechanism

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Important step in the direction of household relief from huge increases in electricity pricesis expected to be the agreement reached yesterday Athens – Brussels.

THE Minister of Energy Costas Skrekasannounced that an agreement had been reached with the European Commission, on its basic principles proposed consumer support mechanism, after his meeting with Energy Commissioner Kadri Simson and General Director of Energy, Ditte Juul Jorgensen.

With the mechanism, the decoupling high gas prices with electricity prices.

“The new mechanism, combined with horizontal subsidies on electricity bills, will create an effective safety net for society tested by explosive energy price hikes.” stressed Costas Skrekas.

In particular, the two sides agreed on the following:

• It will be sent to the European Commission next week draft legislative provision which will describe how the mechanism works.
• The mechanism will not affect the conditions of the European common market electric power.
• The imposing a ceiling on the compensation of electricity generation units based on the actual cost of their production.
• The difference between the compensation and the stock market price of electricity will be transferred to Energy Transition Fund (TEM) and will commit to financing of consumer support measures to offset the effects of the international energy crisis.
• The new mechanism achieves the disconnection of high gas prices with electricity prices to consumers.
• The National Support Program for the energy crisis announced by the Prime Minister, Kyriakos Mitsotakis, provides for the imposition of an indirect ceiling in the retail market, with the additional subsidy of the accounts.
• From May the subsidies are valid for all the houses, main and non-main, without income criteria and for the total consumption.

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