Greek PM Mitsotakis at TIF: A generous subsidy is coming to the price of natural gas

Prime Minister Kyriakos Mitsotakis announced a bold subsidy to the price of natural gas “both from the companies and from the state budget” from the 86th Thessaloniki International Fair.

The goal of the intervention is a “relatively reasonable” price for natural gas, the price of which for consumers will be much lower than its commercial price.

“We also look forward to the European decisions”, Kyriakos Mitsotakis added, noting that Greece was the first to propose imposing a ceiling on the price of natural gas. “Not only in Russian gas, but on the TTF as a whole,” he said. He noted that through the framework established in the summer, more than 1 billion euros have been recovered from the energy companies, while the Commission seems to be moving towards a similar mechanism.

It is noted that with the Greek mechanism, excess profits are recovered from electricity producers and are directed to the Energy Transition Fund, from where they are drawn as subsidies and targeted support to consumers.

Regarding electricity, the prime minister explained that a way of subsidizing is being considered to keep prices low, but at the same time to give an incentive to save as it is imperative to reduce consumption.

Kyriakos Mitsotakis argued that Greece has one of the lowest electricity prices including VAT in Europe, speaking of a “distortion of reality” by the official opposition.

He also announced an intervention “at the pump” in order to reduce the price of heating oil and thus provide an incentive to use this fuel instead of natural gas. The heating allowance will be extended to 300 million euros.