Government to announce further support for electricity consumers on Wednesday, sources say
A significant increase in the amount budgeted for subsidising electricity consumption is to be announced by Environment and Energy Minister Kostas Skrekas later on Wednesday, according to government sources. The total amount, which currently stands at 500 million euros, is expected to be raised by another 150 million euros, they said.
The decision to increase the subsidies, which have already been doubled from 30 euros per MWh to 60 euros per MWh for up to 300 kWh a month (i.e. from 9 euros per month to 18 euros per month), was prompted by continuing increases in the price for electricity that have a direct impact on the electricity bills of households and businesses. According to the sources, it may rise to 30 euros per month in November and December.
The Public Power Corporation (PPC) also has a policy of discounts amounting to 30 pct for the first 300 kWh and 42 pct for the next 300-600 kWh, which will absorb the greater part of the price hike for consumers. These discounts will appear in bills issued in late October onward.
In addition to direct subsidies, the government is also mulling a suspension in payments for certain fluctuating charges included in power bills.
Meanwhile, the price of electricity on the Greek stock market remained high at an average of 212.72 euros per MWh on Wednesday, with demand covered chiefly by renewable energy sources (47.3 pct), followed by natural gas units (32.7 pct) and imports (8.4 pct).
The subsidies are paid from the Energy Transition Fund, which through an amendment tabled on Tuesday can be financed immediately by a sum of up to 90 million euros by the Renewable Energy Sources Operator & Guarantees of Origin (DAPEEP SA), which now has significant surpluses due to the rise in the wholesale price of power and world market prices for carbon trading rights.
