The “map” of energy subsidies – Tiered subsidy based on consumption

Expanded compared to those that applied last year will be the electricity consumption scales, which will be implemented from next month and are expected to be finalized and announced soon.

As the Prime Minister stated, Kyriakos Mitsotakis at the beginning of his meeting with the President of the Republic Katerina Sakellaropoulou at the Presidential Palace, on Friday, “it is our obligation to be active at the national and European level. At the national level we are implementing a plan to support electricity bills through the neutralization of the readjustment clause and the recycling of surplus profits of electricity producers. Next week, interventions will be announced to reduce the price of natural gas, there will be intervention at the pump in terms of heating oil, but also an expanded heating allowance.”

The new scheme of subsidies will be scalable, with higher support for low consumption and an extra discount for those who achieve energy savings of at least 15% compared to the corresponding period last year. Sources of the Ministry of the Interior determine the scales at which the subsidies will be applied starting next month, well above the scales that applied last year, during the first period of application of electricity subsidies (it was 150-300 kilowatt hours per month). In the meantime, of course, the landscape of the energy market has changed radically with the soaring of natural gas and electricity prices to unprecedented levels.

It is also a given that all categories of consumers will continue to be subsidized (e.g. the second home), but not the entire consumption as is currently the case.

In terms of savings, additional discounts, in the absence of “smart” meters they will be granted retroactively after counting the consumption which must be done every four months.

Nominal electricity tariffs will continue to be announced by suppliers at the end of each month, as will government subsidies (which will now be tiered), on which consumers’ final charge depends.

The system applied by the Greek government since July (maximum prices for electricity producers through which the decoupling of the cost of electricity from the international price of natural gas and the recovery of excess revenues of electricity producers at the source is ensured) is now effectively adopted by the European Commission (belatedly) as a solution to limit the impact on consumers across the EU.

Sources of the Ministry of Foreign Affairs told APE-MPE that the Greek system, which imposes lower prices on electricity producers than those proposed by the EU, will continue to apply, but the Commission’s proposals will also be taken into account. In any case, the prices charged by power producers are revised every month by RAE based on the variation of cost elements (fuel and carbon dioxide emission rights).

Finally, the scheme for achieving the energy saving targets is being formulated based on the directions that are expected to be finalized by the European Commission.

The proposal foresees the obligation to reduce electricity consumption by at least 5% during selected peak demand hours which – due to heating with air conditioners and electrical appliances – in our country occur in the evening hours of winter (the corresponding summer peaks at noon due to use of air conditioners are limited due to the scattered production of photovoltaics). The “package” of measures will include a consumer awareness campaign and possibly cuts in return for large industrial consumers. Since natural gas plants are the most expensive and last to enter the system, every megawatt hour saved reduces the import and use of natural gas.

RES-EMP

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