Subsidies on electricity tariffs are being reinstated by the government after a wild rally in wholesale prices that threatens to set bills on fire. The Minister of Environment and Energy, Theodoros Skylakakis, announced on Wednesday three interventions aimed at supporting consumers. The decisions to intervene in the energy market were locked on Tuesday in a meeting chaired by the prime minister at Megaros Maximos.

In particular, the minister announced emergency fee reset for electricity generation with natural gas, temporarily, for at least 2 months, July and August. The exact height will be announced within the next few days, he clarified.

Also, Mr. Skylakakis announced subsidizing households in August. He also clarified that how and how much will be announced at the end of July and beginning of August, after it is known how the prices will move in wholesale and retail.

Third measure is creation control mechanism for distortions in the electricity market. “We will incorporate into law the emergency directive for additional welfare for the benefit of citizens for distortions that have endemic characteristics” write down.

The Minister of Energy noted that an important intervention in the last year was the establishment of colored tariffs, which give options to consumers.

For lignite and natural gas, he clarified that prices are shaped by two exogenous factors, in which no government can intervene. Pollutant prices and pan-European natural gas prices. Compared to 2019, natural gas prices have doubled and pollutants have tripled, he stressed.

As for the farmers, the minister emphasized that it is in their interest to enter GAIA. As he said, he guarantees them pre-crisis prices for all their energy for two years. They have until October to enter, with Mr. Skylakakis urging “to go register at GAIA yesterday”.

In his interview with SKAI, Kyriakos Mitsotakis announced the government’s decision to impose for two months an extraordinary fee to electricity producers, in order to relieve the citizens in August. This is an extraordinary fiscal intervention.

“Let’s use this income to be able to relieve the electricity bills in the month of August. Because at the moment, with the course of prices, the citizens in August would actually see a sharp increase in electricity prices”, he stressed.