At 8.30 in the morning will be made by the competent ministers, the specialization of measures for the relief of citizens from exorbitant charges on electricitywhich was announced yesterday by Prime Minister, Kyriakos Mitsotakis.
This is a National Support Programwhere will absorb 70% to 80% of the increase of the price per kilowatt hour for households, businesses and farmers, with double state intervention in the wholesale and retail energy market and substantial suspension of the adjustment clause.
The first phase of government planning, provides for a retroactive return of the huge increases in tariffs from December to May. The state returns to the individual bank account of each owner or tenant of a first home 60% of the additional charges he has suffered from December to May. The limit of this extraordinary compensation will be 600 euros and will concern them all our fellow citizens with an annual income of up to 45,000 euros.
The second phase covers May and June and provides for 50% coverage of any increase in consumption beyond the 300 kwh subsidized to date. The new discount will also apply to non-main residences and in fact for their total monthly consumption. The measures now with a steady orientation of the weakest this time, aim at the significant relief of the middle class.
The third phase of the plan concerns interventions in the wholesale and retail price of electricity, with the aim of stabilizing prices at much lower levels than today, for the next 6-12 months.
What applies in detail to four questions and answers
1. The purpose of the interventions and their key points
According to government sources, the aim of the interventions is “how to further and retroactively relieve all citizens who saw huge increases in their tariffs from December to May and how the additional aid is formed for main and secondary residences until June. The State returns to the individual bank account of each owner or tenant of a first home 60% of the additional charges he has suffered from December to May. The limit of this extraordinary compensation will be 600 euros and will concern all our fellow citizens with an annual income up to 45,000 euros.
At the same time, for May and June, any increase in consumption beyond the 300 kwh subsidized to date will be covered by 50%. The new discount will also apply to non-main residences and in fact for their total monthly consumption. The measures now with a steady orientation of the weakest this time, aim at the significant relief of the middle class “.
At the same time, the government’s goals are to intervene in the energy market, wholesale and retail, in a permanent and fair way that will streamline the market and stabilize prices at much lower levels than today. “The Greek government has been launching a system since July on its own initiative that cuts the heavy link between increases in international gas prices and electricity bills in Greece. With a double intervention in both the wholesale and the retail energy market, we set an indirect ceiling in the retail market and stabilize the retail prices for the next 6-12 months “noted the same sources and added that for this reason” we suspend for as long as this scheme lasts , the Adjustment Clause and we cut with a knife the conjunctural overpayments of the energy companies “.
Government interventions also include “how to manage the so-called overpayments of energy companies so that there is a fair collective sharing of the burden of price increases, but also how the state can help consumers better adapt to new data and reduce their energy costs on a permanent basis through energy saving actions “.
2. Government interventions to date
Since the beginning of the war, they have been noted successive records of high international prices in gas and electricity which have driven their prices at least three times higher than pre-crisis levels. That is why our government, from the very beginning and seeing the intensity and impact of the international energy crisis on energy bills, essential goods and raw materials, has moved in three directions:
a). With targeted measures to support households and businesses totaling 4 billion euros so far -one of the largest aid packages in the EU
b). With dynamic proposals and alliances at European level for joint intervention in the international gas markets which will temporarily disconnect the effect of its price on electricity
c). With legislative initiatives, continuous checks and strict fines on those who cunningly try to speculate on the international crisis
So to the question “what have you done so far and why did you not move faster” the answer is that we have already done a lot, certainly more and earlier than other European countries. But knowing that these too are not enough to cover all the increases for all consumers and at the same time waiting for European initiatives.
● We are the first country in Europe to create Energy Transition Fund to which the overpayments of the special RES account, the special account of SGIs are driven, as well as the revenues from the auctions of CO2 pollutants to be returned as discounts to the electricity bills.
Σήμερα To date they have been provided by the Energy Transition Fund 2.2 billion for subsidies and an additional 1.1 billion from PPC and DEPA trading in discounts on electricity and gas, trying to mitigate the explosive increases in energy.
● For a significant number of households approaching 70%, 2.3 million households to be exactconsuming up to 300 kwh per month for his main residence, we absorb up to 80% of the increase.
● In addition, more than 1,250,000 micro and small enterprises who saw the electricity bills as unbearable in the previous months, from April onwards thanks to the very high subsidy but also the retroactive subsidies for the consumptions of the months of December 2021 until April 30, will find in the bills they will receive in the next period, the positive impact of government aid on reducing their energy costs.
The problem is mainly found in the approximately 1 million households that are heated during the winter with electricity, as a result of which they consume much more energy than the subsidized one, with a large part of this consumption being left out of the subsidy.
3. What is achieved with the double permanent intervention in the energy market (wholesale and retail) from July
-Electric prices are returning to significantly lower levels than today
– The creation of surplus income from the stock market is cut
– Substantially suspends the adjustment clause
– Based on an objective and fair method of calculation developed by RAE, the reasonable final consumer prices are adjusted based on the variable costs of energy providers. We cover by 70% to 80% the increases in electricity prices before the crisis.
4. What will happen to the surplus revenues of energy producers
The government’s decision is that these revenues – when certified by the Energy Regulatory Authority – will be taxed at 90%. We are waiting for RAE’s decision on this. According to the Prime Minister, the amount corresponding to the extraordinary fee will be imposed on all energy companies from October 2021 to June 2022. This fee will feed part of the additional discounts to households and businesses. With the new mechanism that will be implemented from July, the production of super revenues will stop.
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