Greece Acts to Protect Consumers amid Soaring Electricity Prices

Greek Minister of Environment and Energy, Theodoros Skylakakis, unveiled the government’s plan to shield consumers from surging electricity prices in Greece during an announcement on Wednesday.

Skylakakis outlined the government’s initiatives but withheld specifics regarding the emergency tax and bill subsidies, which are slated for finalization by late July. The subsidies will be financed through an emergency charge levied on windfall profits earned by natural gas electricity producers in July and August.

Highlighting the government’s proactive stance against “skyrocketing profits” detrimental to consumers amidst recent significant price hikes, the minister detailed three key measures:

1. Immediate reinstatement of a levy on natural gas electricity production, effective for at least July and August. Exact details of this levy per thermal megawatt-hour for natural gas-fired plants will be disclosed shortly.

2. Subsidization of electricity bills for all consumers with variable pricing, ensuring costs remain stable akin to previous months. This move aims to prevent the July wholesale market price spikes from impacting consumer bills.

3. Adoption of the European energy market directive, designed to safeguard consumer interests and deploy mechanisms to counter market distortions.

Deputy Minister of Energy Alexandra Sdoukou added that the subsidies will specifically benefit consumers with green and yellow tariff plans in August, characterized by fluctuating rather than fixed rates.

Funding for these subsidies set to commence after providers announce tariff details, will be sourced from the emergency levy.

The subsidy will apply without exception to primary and secondary residences initially in August, with a consumption cap set at 500 kilowatt-hours.

Source: tovima.com