Tag Archives: Energy subsidies

Energy subsidies for March

The basic subsidy for domestic electricity consumption will remain the same as last month at €40 per megawatt/hour, the minister for the Environment and Energy Kostas Skrekas announced at a press conference on Tuesday 28th February. At the same time the prices announced by most suppliers have dropped slightly so that consumers’ electricity bills will also be slightly reduced. In detail, the subsidies for March will be as follows:

Government subsidies for the nation’s electricity bills in March will remain at the same level as last month, according to the ministry of the Environment and Energy. Photo: ERT News

Domestic consumers

For monthly consumption of up to 500 kWh – a category which includes 90 per cent of households – the subsidy will be €40 per MWh. Households with monthly consumption over 500 kWh will receive the same amount on the condition that they have reduced their consumption by 15 per cent compared with the same period last year.

Households enrolled in the Social Residential Tariff will receive a subsidy of €84 per MWh. For farmers, the subsidy will be €40 per MWh

Industrial consumers

For energy-intensive industries (including steel mills, cement and aluminium works, potteries, textile producers, paper- and glass-makers, etc) the minister noted that a support scheme is being planned on the basis of the EU’s Community Framework. It will include businesses which have not entered fixed price contracts of over 12 months, will not be signing bilateral physical delivery contracts with electrical energy suppliers, and are faced with a 40 per cent reduction in operating margins as a result of the increase in the cost of electricity. For these cases, there will be a subsidy of €50 per MWh for the whole of 2023.

Examples of benefits

The Energy minister quoted several examples of the benefits to domestic consumers, comparing the costs on a typical bill before and after the subsidy and with the addition of the economy bonus:

– For a consumption of 400 kWh, a householder in March would pay €78.00 without the subsidy, but €62.00 with it.

– For a consumption of 700 kWh the cost would be €136.50 without the subsidy but €116.50 with it, falling to €108.50 with the additional economy bonus.

– For a consumption of 1,200 kWh, the cost would be €234.00 without the subsidy, €214.00 with the subsidy and €186.00 with the additional economy bonus.

The unit price on which these figures are based works out at €0.195 per kWh. It should be remembered that households consuming over 500 kWh per month still receive the subsidy on the first 500 kWh. Thus someone consuming 700 kWh will pay a total of €136.50 without subsidy, less €20.00 subsidy for the first 500 kWh, or less €28.00 subsidy for the whole 700 kWh if they qualify for the economy bonus.
(Haniotika Nea, 01/02/23)

Reduced energy subsidies for February

On 30th January the energy minister Kostas Skrekas announced new energy subsidies for the month of February, which will be at a lower level than previously since the prices from electricity suppliers have fallen by 65 per cent compared with last month.

“Today, we are in a period of drastic de-escalation of international prices for natural gas as a result of the institution of a European cap on gas prices,” he said. He pointed out that it was the prime minister Kyriakos Mitsotakis who had first proposed in March 2022 that the EU should impose a realistic cap on gas prices, to restrict profiteering in the international markets. Reviewing the government’s efforts to support Greek consumers to date, Mr Skrekas said that so far the government has spent a total of €8.2 billion supporting consumers’ electricity bills. He then announced the following figures for February.

Subsidies for domestic consumers

For all supplies to primary and non-primary residences and regardless of income, consumers of up to 500 KWh per month will receive a subsidy of €40 per Megawatt/hour (MWh), or 4 cents per KWh. Ninety per cent of Greek households fall into this category.

Consumers of more than 500 KWh will receive the same subsidy so long as they have reduced their average daily consumption by 15 per cent by comparison with the same period last year.

Households enrolled in the Social Residential Tariff will receive a subsidy of €88 per MWh.

Subsidies for commercial consumers

Commercial consumers with low- medium- and high-tension supplies will all receive a subsidy of €20 per MWh. For farmers the subsidy will be €40 per MWh.

The total amount of subsidy available to domestic, commercial and agricultural consumers for the month of February is €95 million.

It has been clarified that domestic consumers of over 500 KWh per month will still receive the subsidy on the first 500 KWh consumed, regardless of whether they have reduced their consumption.

There will be no subsidy for consumers of natural gas.

(Ministry of the Environment and Energy)

Increased energy subsidies for January 2023

The minister for the Environment and Energy Kostas Skrekas has announced new measures for supporting the community against the effects of the international energy crisis. The announcement of the subsidies for January’s electricity bills comes after a historic decision was reached by the Council of EU Energy Ministers to cap prices for natural gas at €180 per MWh, which is expected to have multiple benefits for EU citizens.

Speaking at a press conference on Friday 23rd December, the minister said that the measure was “both appropriate and necessary”. The data show that if the mechanism had been instituted earlier, the price cap would have been applied for more than 30 days this year, thus avoiding enormous extra costs for natural gas, especially during last August when the price exceeded €340 per MWh, ten times higher than in previous years.

Minister for the environment and energy Kostas Skrekas
Energy minister Kostas Skrekas announcing new energy subsidies for January at a press conference on Friday 23rd December.

In the meantime the government is continuing its subsidies for electrical power in January, which for households and businesses will reach a total of €840 million, i.e. double that spent in December. The major part of the money which will be made available in the coming month comes from taxes on the windfall profits of electricity producers and suppliers and from income from auctions held under the EU’s Greenhouse Gas Emissions Trading Scheme.

Electricity subsidies for January – domestic tariffs

For all supplies to main and secondary residences, regardless of income and supplier, the following scales apply:

– For monthly consumption of up to 500 kWh, the subsidy is €330 per MWh. This category includes 90 per cent of households in Greece. The subsidy absorbs 87 per cent of the price increase.

– For monthly consumption of 501 to 1,000 kWh the subsidy is €280 per MWh. However, if the household reduces its average daily consumption by 15 per cent compared with the same period last year, the subsidy is increased by €50 per MWh.

– For monthly consumption of 1,001 KWh and above, the subsidy is €190 per MWh. This applies to only 2 per cent of Greek households. In this category also, there is an additional subsidy of €50 per MWh if consumption is reduced by 15 per cent.

Households which are enrolled in the Social Residential Tariff will receive 100 per cent of the increase, with their subsidy totalling €378 per MWh. The total value of the domestic subsidies for January is €470 million.

Electricity subsidies – commercial tariffs

For businesses with supplies of up to 35 kVa and consuming up to 2,000 KWh, the subsidy for January will be €292 per MWh, a figure which absorbs almost 80 per cent of the increase.

For professional and commercial users with supplies of up to 35 kVa and consuming over 2,000 kWh per month, as well as all the other non-domestic low-, medium- and high-tension tariffs , the subsidy is €134 per MWh.

For bakeries, regardless of supply voltage and for the whole of their monthly consumption, the subsidy is €292 per MWh. For farmers there is a flat rate subsidy of €330 per MWh, which absorbs 92 per cent of the increase.

As with the domestic tariffs, the greater part of the subsidy comes from windfall taxes on the producers and suppliers of electrical power applied by the Greek Government since last July, which have produced over €3.2 billion.

Natural gas – subsidies for domestic consumers

The national gas supplier DEPA, together with all other suppliers will give a flat-rate subsidy of €20 per thermal MWh. The measure affects 700,000 households, regardless of income, property size or supplier.

New energy subsidies for December

Following the announcement of new electricity prices by the power suppliers, the government has announced the subsidies it will be paying for households and businesses for the month of December 2022. The total amount available for subsidies for the month is 435 million euros.

Electricity – domestic tariffs

For all supplies to primary and non-primary residences, regardless of income and supplier, the scales for December are as follows:

– For monthly consumption of up to 500 kWh, which covers 90 per cent of Greek households, the subsidy is 221 euros per megawatt/hour, or 22.1 cents per kWh.

– For monthly consumption of 501 to 1,000 kWh, the subsidy is 171 euros per megawatt/hour (17.1 cents per kWh). Additionally, households which achieve a 15 per cent reduction in daily consumption compared with the same period last year will receive an additional subsidy of 50 euros per mWh.

– For monthly consumption over 1,000 kWh, the subsidy will be 81 euros per mWh.

Families who are enrolled in the Social Residential Tariff will receive a subsidy of 269 euros per mWh.

Electricity – business tariffs

For commercial consumers with supplies of up to 35KVa, who consume up to 2,000 kWh in the month, the subsidy for December will be 183 euros per mWh.

For professional and commercial consumers with supplies of up to 35kVa who consume up to 2,000 kWh, as well as all other non-domestic tariffs for low-, medium- and high-tension supplies, the subsidy will be 34 euros per mWh.

For farmers there is a flat-rate subsidy of 221 euros per mWh.

Natural gas – domestic tariffs

The national gas supplier DEPA in collaboration with the other suppliers will give a flat-rate subsidy of 15 euros per thermic mWh for all domestic consumers. The measure affects 700,000 domestic consumers regardless of income, dwelling size or supplier.

Source: www.odigostoupoliti.eu

Free firewood on Gavdos

Meanwhile, on Gavdos, the smallest municipality in the Nomos of Chania, the authorities are distributing free firewood to all the island’s residents. For the first time this year, with the permission of the forestry department, the municipality has felled a substantial number of pine trees which had dried out or were visibly in danger of falling and causing damage, or of constituting sources of flammable materials in case of fire.

The felled trees have been cut up and shared out to the island’s inhabitants for them to use as fuel in their stoves and fireplaces. The initial needs of the island’s households have already been met and there is an equvalent amount left which has been stored for distribution when the first installment runs out.

Distributing free logs to residents on Gavdos island
Photo: Municipality of Gavdos

According to an announcement on the municipality’s website: “this initiative took place in the context of a sincere effort by the municipality to promote Social Cohesion on our far-flung island, something which is growing thanks to the effect of our work as whole in the local community relative to the particular conditions which we are faced with. As the Municipality, through this initiative we have – at the least – been able to give a dynamic response to the uncontrolled energy crisis, creating in practice the warmth which as humans we are all entitled to!”

The project is being put forward as a candidate for the Innovation in Politics and other EU awards.

Source: Haniotika Nea, 18th November.

Energy subsidies for November

The electricity subsidies for November will absorb up to 90 per cent of the current cost increases, according to a recent announcement by the minister for the Environment and Energy Kostas Skrekas, reported on Tovima.gr.

The subsidies will apply to both primary and secondary residences and are independent of income and energy supplier.

At the same time, electricity suppliers have announced significantly lower prices for November, with reductions of up to 37 per cent compared with October.

In announcing the subsidies, the minister issued a recommendation that people should refrain from using energy-intensive appliances during the peak hours of 6.00 pm to 9.00 pm. As before there will be three levels of subsidy:

At the first level, households consuming up to about 500 KWh per month will receive a subsidy of 238 euros. According to the ministry this category, which receives the largest subsidy, accounts for 90 per cent of households.

The second level includes households with a monthly consumption of 501 to 1,000 KWh, who will receive a subsidy of 188 euros. In addition, those achieving a reduction in consumption of 15 per cent over the same period last year will receive an additional 50 euros’ reduction on their bills.

The third level, which accounts for 2 per cent of households, comprises those consuming more than 1,000 KWh per month. They will receive a subsidy of 50 euros per megawatt/hour (MWh). This level will also receive an additional 50 euros per MWh if they show 15 per cent in energy savings over the previous year.

Households enrolled in the Social Residential Tariff will be relieved of 100 per cent of the increase and will receive 286 euros per MWh.

Commercial tariffs

For non-residential consumers with supplies of up to 35 kVA, the subsidy for the first 2,000 KWh in November is 200 euros per MWh. Those consuming more than 2,000 KWh monthly will receive a subsidy of 50 euros per MWh for the extra amount.

Farmers will receive a flat-rate subsidy of 238 euros per MWh for the month.

Suppliers reduce prices

Most of the main energy suppliers are showing substantial reductions in the unit cost of electricity compared with the month of October. They are DEH -33.3%, Protergia -31.5%, Elpedison -35.6%, IRON -37.1%, Watt+Volt -31%, Eliv -35%.

New energy subsidies for October

With the whole of Europe suffering from massive rises in the cost of electricity and fuel as a result of the Russian invasion of Ukraine, the government has announced a further packet of measures to help households and businesses in October.

At a press conference on Wednesday 21st September the Energy minister Kostas Skrekas said that the government is continuing to pursue its three-pronged policy of subsidising affordable energy prices for households, taking steps to ensure adequate supplies of energy throughout the winter, and encouraging energy-saving measures.

A windfall tax on the profits of electricity companies has already yielded EUR 2 billion in 2.5 months, which will go to support energy subsidies and energy security and transition measures. Record amounts of liquefied natural gas are arriving a the newly expanded Revythousa terminal in the Megara Gulf near Athens.

Subsidies for electricity

From 1st October there will be a new graduated scale of subsidies for household electricity bills. Specifically, for the month of October, there will be three categories of subsidy for domestic consumers.

1) For households consuming up to 500kWh per month, a subsidy of EUR 436 per Megawatt hour will cover 90 per cent of the price increase. This bracket includes 90 per cent of households in Greece.

2) For monthly consumption from 501 to 1000 kWh, 80 per cent of the increase will be absorbed, with a subsidy of EUR 386 per MWh. However, if a household reduces its average daily consumption by 15 per cent compared to the same period last year, the subsidy will be increased by EUR 50 per MWh.

3) For monthly consumption over 1001 kWh, the government will absorb 70 per cent of the increase with a subsidy of EUR 336 per MWh.

For households which are enrolled in the Social Residential Tariff, almost 100 per cent of the increase is absorbed, with a subsidy of EUR 485 per MWh. There are also scaled subsidies for businesses and and a flat rate of EUR 436 per MWh for farmers.

The total cost of electricity subsidies for the month of October will come to EUR 1.1 billion, of which 1 billion will come from the windfall tax on electricity suppliers and pollutant permit auctions, and EUR 100 million from the government budget.

The measures follow an expenditure of EUR 1.9 million in September, with electricity subsidies ranging from EUR 639 per MWh for households and farmers, down to EUR 342 per MWh for industry.

Subsidies for natural gas

The national gas suppplier DEPA, together with the other suppliers, will provide a flate rate subsidy of EUR 90 per thermal MWh for all domestic consumers, absorbing 50 per cent of the increase. The measure will affect 700,000 domestic consumers regardless of income, dwelling size or supplier. There will be a subsidy of EUR 40 per thermal MWh for all commercial consumers, regardless of business turnover or number of workers.

The Energy ministry has published on its website a list of 23 suggested measures for saving energy in the home, which can be found here (in Greek only).

Minister at international gas conference

Energy minister Kostas Skrekas

Speaking at the Romanian International Gas Conference – RIGG 2022 in Bucharest on Thursday 22nd September, the Greek Energy minister Kostas Skrekas outlined the government’s strategy for ensuring energy security during the coming winter and highlighted the steps it is taking to develop the country’s energy independence. He noted that Greece’s consumption of natural gas in September was 40 per cent less than in the same period last year. Record amounts of imported liquid natural gas (LNG) have been arriving at the Revythousa terminal and the country’s LNG regasification capacity has increased by 12 per cent since June. While the TAP pipeline which links Greece, Albania and Italy is so far providing almost 20 per cent of Greece’s domestic consumption, the IGP pipeline linking Greece and Bulgaria will start commercial operation on 1st October. It will have a capacity of 3 to 5 billion cu m per year.