Targeted subsidies, better information to consumers about electricity prices, measures for electricity theft and strategic non-payers, as well as a special tariff for many children include the interventions of the Ministry of Environment and Energy in the electricity market that are expected to be announced next week by the minister Theodore Skylakakis.

The framework of horizontal subsidies (to all consumers) applied since last year will be maintained until the end of the year, but then (after a “strong recommendation” by the European institutions and as energy prices have fallen from historically high levels of 2022) will be replaced by targeted subsidies which – according to the Ministry of the Interior – will have a relatively broad scope of application. Most likely, not only the economic situation of the consumers will be taken into account, but also the energy needs, which differ by region, in proportion to those applicable to the heating allowance. In any case, as stated by the Ministry of Foreign Affairs, if there is a lasting international price crisis, the framework of subsidies will be reviewed.

In relation to informing consumers, the Ministry of the Interior is proceeding with relevant legislation to oblige suppliers to offer their customers – in addition to any other invoices they have – a single invoice, the amount of which will be announced in advance each month and will result based on a single formula (mathematical formula) to be applied by all suppliers. Therefore the differentiation by supplier will be related to the profit margin that each company will add to the base price, thus facilitating comparison from the consumer side.

According to the information that has become known, the new tariff will be applied to all consumers with the exception of those with contracts with a fixed price. For the rest, with variable contracts, which are the majority, it has not been clarified whether it will cover those who have contracts in force or only those who no longer have a contract (it has expired).

The new regime succeeds the emergency framework in place since last year due to the energy crisis which included a ceiling on the compensation prices of power plants, suspension of the readjustment clause and announcement of retail prices valid each month until the 20th of the previous month. Objections to the new framework are expressed by representatives of suppliers arguing that it practically leads to a single tariff and restriction of competition.

In relation to electricity theft, the radical solution is the installation of smart meters, which, however, is a process that requires time (the relevant DEDDIE tender is ongoing). According to the information, the installation of smart meters is being considered as a priority to consumers who have previously been identified as electricity theft or also centrally, in substations in areas where there have been increased cases in the past. Thus, if the energy consumed is systematically more than what is recorded on the meter and billed, then more targeted checks will be made. It is noted that the cost of electricity theft is covered by the rest of the consumers since the energy that is not recorded is billed in the total consumption, charging each bill an average of 4%.

For strategic defaulters, broad cross-checks of their income and asset status are promoted to identify those who do not pay bills when they have the ability to do so.

Finally, for those with many children, the restoration of the special reduced tariff that was valid until 2018 is being promoted, with income criteria and expanded consumption limits compared to those applied to the tariffs of vulnerable consumers.