Economy

Reductions in electricity: How and when returns and subsidies will be given

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Clarifications on how the state will intervene so that reduce electricity bills to households and businesses were given by government officials during the presentation of the measures announced yesterday by the Prime Minister and include, inter alia, the refund of 60% of the charges.

In detail, in May and June will continue subsidies on electricity bills and gas in household and business tariffs.

Household consumers
The subsidy covers all dwellings, main and non-main, without income criteria and for the total consumption.

Particularly:
• At main residencesfor the first 300 kWh, 86% of the increase in electricity costs is absorbed, as the average aid will amount to 56.6 euros per month.
• For the first 150 kWh the subsidy is set at 205 euros / MWh.
• For monthly consumption from 151 to 300 kWh at 160 euros / MWh.
• For the total consumption over 300 kWh per month the amount of the subsidy amounts to 100 euros / MWh.
• For all non-main residencesthe total consumption is subsidized with 100 euros / MWh in order to absorb 50% of the increase.
• For beneficiaries of Social Housing Invoicethe subsidy will amount to 215 euros / MWh for the total consumption, aiming to absorb 100% of the increases.

The total amount of the subsidy for household consumers in May will be set at EUR 200 million.

The June grant will be announced at the end of May.

How much the bills will be reduced in May – Examples
• Household invoice with consumption 300 kWh per month: Without subsidy he would pay for electricity 100 euros and with the subsidy 43.5 euros – 56.5% discount on energy bill.
• Household invoice with consumption 400 kWh per month: Without subsidy he would pay 129.2 euros and with the subsidy 63.6 euros – 51% discount.
• For consumption 600 kWhconsumers will pay with the subsidy 108.2 euros while without subsidy they would pay 193.8 euros – 44% discount.

Subsidy on professional invoices
For business consumers, the unit price of the subsidy is set at 120 / MWh in May for total consumption.

In addition, for small and medium enterprises with power supply up to 35kVA and for all bakeries regardless of the power supply, the government with additional
subsidy 50 euros / MWh total consumption. So the total unit subsidy amounts to 170 for May.
With this measure, we subsidize 80% of the adjustment clause.

It concerns 1,250,000 million professional services of companies such as: restaurants, shops, kiosks, haberdashery, hairdressers, offices, bakeries and
estimated at 35 million euros for April.

In total, in May the total subsidy for professional invoices amounts to 260 million euros.

Natural Gas: Subsidy on Household Invoices
The state subsidy will amount to 20 euros per thermal MWh in May for all households and for the total monthly consumption.

At the same time, DEPA Commerce continues to offer a discount for the same period of 20 euros per thermal MWh.

Natural Gas: Subsidy on Commercial-Industrial Invoices
The subsidy for gas bills for the next two months continues for all commercial and industrial consumers, regardless of size, turnover and number of employees.

The subsidy will amount to 20 euros per thermal MWh for the total monthly consumption.

The total amount of the subsidy from the Government for household and professional gas consumers will amount to 20 million euros in May.

Return of 60% of the charges to the electricity

In terms of reimbursement of 60% of the cost of electricity of main residence billshousehold consumers for bills issued from 1st December 2021 to 21 May 2022, return will count the date of issue of the bill and not the period of consumption.

The retroactive return will apply to those who have not been covered by the discounts provided by the state or energy providers. Beneficiaries are households with declared family tax income up to 45,000 euros.

In particular, the return is given to those who had a total power increase in 6 months over 30 euros. The minimum return is 18 euros and the maximum can not exceed 600 euros.

A prerequisite for receiving the aid will be the expression of interest in the relevant platform that will be made for the purpose and is expected to operate in early June.

Meanwhile, according to the government spokesman Giannis Oikonomou on SKAI TV and the show “Unmatched”, in mid-June are expected to be the first 60% refund payments electricity directly to the beneficiaries’ bank accounts.

Clarify that money will be entered into bank accounts and will not be related to any debts consumers to providers.

The platform added, will be ready in June, detailed and easy to use while the return will apply to both landlords and tenants.

Mr. Economou stressed that the beneficiaries will see refunds of up to 600 euros, ie 60% of the increases after the discounts that have already been given to them in the period from December to May.

What will take effect from July
From July 1, the government will proceed with a drastic institutional intervention in the energy market. Specifically it will apply new unit compensation mechanism
power generation
based on their actual operating costs and thus are disconnected from the wholesale energy price
the international price of gas.

Suspension of the adjustment clause

In this way, the total revenue of the electricity producers and the special account of RES, which for the next six months is estimated at 1.630 billion euros, will be recovered. In total, together with the subsidies from the Budget and the Energy Transition Fund, in the next six months the total financial support for the electricity bills will approach 3.2 billion euros.

Also, since the measures disconnect the wholesale purchase price from the marginal price of the system, with a ministerial decision the adjustment clause is suspended for the entire period of operation of the new mechanism.

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