Subsidies for February are at lower levels compared to previous months as the fall in international prices drastically reduced supplier invoices
The benefit from electricity subsidies for an average household exceeds 1100 euros from the implementation of the mechanism for imposing a ceiling on the revenues of electricity producers and the abolition of the tariff adjustment clause, which was replaced by the pre-announcement, each month, of the charges applicable the following .
This amount arises as a benefit for a household that consumes 500 kilowatt hours per month (90% of households do not exceed this consumption limit, according to the Ministry of the Interior) based on the PPC household tariff for the period from August 2022 to in February 2023.
According to the relevant calculations, without the subsidies a household would pay in this period only for the value of the energy (without fixed costs, network tariffs, taxes, YKO, municipal fees, etc. charges included in the electricity bills) 1667 euros. With the application of the subsidies, this amount dropped to 546.5 euros.
In practice the benefit is not only savings for households but more generally as without subsidies it is certain that a large – if not the largest – part of the population would be unable to cover the cost of electricity and the energy market would be faced with collapse .
The subsidies for February – according to the announcements of the Minister of Environment and Energy, Kostas Skrekas – are at lower levels compared to the previous months, as due to the drop in international prices, suppliers’ invoices were drastically reduced.
Indicatively, PPC’s initial tariff for February is 199 euros per megawatt hour, while in September it had reached 788 euros and in October close to 600 euros per megawatt hour. Thus, the amount that the Energy Transition Fund will have to disburse is correspondingly reduced in order for the final price of the kilowatt hour to remain at the desired level. Which for the most recent period has been 15-16 cents per kilowatt-hour and is achieved by fluctuating the subsidy according to the fluctuation of the suppliers’ nominal tariffs.
According to the figures mentioned by Mr. Skrekas, the total amount of electricity subsidies in the last 18 months, since the beginning of the energy crisis, amounts to 8.2 billion euros. In February – due to the drop in prices – the subsidy is 95 million euros while in September when prices reached their maximum the subsidies exceeded 1.9 billion euros.
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