Economy

How electricity and natural gas will be subsidized – The new mechanism

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The new subsidy mechanism will be announced at 9.30 am by the Minister of Energy Kostas Skrekas.

By Chrysostomos Tsoufis

The new subsidy mechanism electricity bills which will be announced in a few hours by Kostas Skrekas will provide for a tiered subsidy to households. It will include three different levels depending on consumption and correspondingly three different subsidies. The subsidies concern all households without income criteria, while the secondary residence will also be subsidized.

In the first tier will be placed the lowest consumptions which, according to the government representative, will be those up to approximately 500KWh/month. According to the calculations of the Ministry of Energy, the vast majority of households belong to this category and they will enjoy the largest subsidies. And in October the mechanism it will cover 90% of price increases for households and farmers and around 85% for businesses.

All other consumptions will be placed in the second and third tiers. In these categories the subsidy will be lower however, those who manage to achieve energy savings of 15% compared to last year’s consumption in the corresponding period will then receive a subsidy bonus with the issuance of their settlement accounts. There will also be a savings bonus for businesses.

And about it natural gas and the approximately 700,000 households that use it the subsidy will continue to be horizontal without income criteria. The system here will not include scales and not even bonuses as we have written before skai.gr it is technically very difficult to calculate the savings as there are many apartment buildings that are supplied with natural gas as a block.

However, it must be emphasized that the subsidy will be higher than it was in force at the beginning of the year, but it will be much lower than the one enjoyed by electricity consumers.

Kostas Skrekas will also refer to the heating oil which will be available from October 15 and for which a horizontal discount of 25 minutes will apply at the pump for everyone. It will be financed by the revenue generated by the extraordinary tax imposed on the surplus profits of the refineries.

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