What is changing in the electricity subsidy and the heating subsidy – Mitsotakis’ energy announcements

By Chrysostomos Tsoufis

The supplementary budget tabled today in the Parliament will include the Prime Minister’s announcements to the TIF regarding the temporary support measures for households and businesses with direct application in relation to energy accuracy.

The total increase in regular budget appropriations will reach 2.5 billion € while by 400m. € will also strengthen the public investment program.

The lion’s share of the additional costs, as is reasonable, is taken by continuation of subsidies on household and business electricity bills.

But, as we have written many times from here, the prime minister made it clear that the method of aid is changing.

Although the economy is doing extremely well, the budget cannot continue to subsidize 6.5 million benefits – even if they constitute a 2nd or even a 3rd home – horizontally and without any kind of criteria.

Instead, from next month the subsidy will probably become consumption-based, taking into account whether the household reduces energy consumption. In this way, according to the prime minister, the price of the bill is kept low, but the much-desired savings are also achieved, which acquires a critical character. And this is because Europe is struggling to find a comprehensive solution – the prime minister showed anything but optimism – but also because the risk of a complete stoppage of the flow of natural gas for the country, which is currently being carried out by the Turkstream pipeline is absolutely real.

The provisions of the supplementary budget will include increase in the heating allowance which from 830,000 last year is expected to strengthen the wallets of approximately 1.3 million beneficiaries as it increases by 70% to approximately €300 million, while broadening the income criteria.

By studying the budget, we may also become wiser about the cost of the planned measure to reduce the price of heating oil at the pump for everyone.

The increase in the heating allowance combined with the horizontal reduction in its price are an incentive for households that used natural gas for heating last year and have the possibility to switch to oil or other sources this year. For the rest who cannot switch to natural gas, according to the prime minister there will be a significant subsidy on their bills from both the state budget and the providers.

€140 million will also be earmarked for the expansion of the Recycle-Change appliance program to serve an additional 200,000 households.

Perhaps more important than all the government’s energy policy announcements is the assurance of Kyriakos Mitsotakis that all necessary actions have been taken to ensure natural gas sufficiency even if Turkstream is closed. The prime minister emphasized that sufficient LNG cargoes have been secured which, in combination with the doubling of Revythoussa’s capacity, the storage of quantities in Italy, the conversion of fuel from natural gas to diesel for some units and the increase in energy production from lignite will help the country to … take out the most difficult winter since the second world war.

Read the News today and get the latest news.
Follow Skai.gr on Google News and be the first to know all the news.