Greece, Government will increase subsidies for energy bills to 840 million euros in January

, SEE Energy News

Greek Minister of Energy Kostas Skrekas said that the Government will increase subsidies for energy bills to 840 million euros in January, in order to continue supporting households and businesses against soaring energy prices.

Minister Skrekas said that the support, which is double the amount allocated in December, will be funded by a windfall tax on electricity producers and carbon emission rights.

Greece had earmarked more than 10 billion euros this year to help households and businesses pay their electricity, gas and heating fuel bills which have jumped following a spike in energy prices in the wake of the war in Ukraine.

For customers using up to 500 kWh of electricity per month, which accounts for about 90 % of Greek households, the subsidy will reach 330 euros/MWh, absorbing up to 87 % of the increase.

For monthly consumption from 501 to 1,000 kWh, the subsidy amounts to 280 euros/MWh. If a household reduces its average daily consumption by 15 %, the subsidy increases by 50 euros/MWh.

For monthly consumption exceeding 1,001 kWh, the subsidy amounts to 190 euros/MWh, which relates to just 2 % of residential consumers.

For commercial consumers with a supply up to 35 kVA and for monthly consumption up to 2,000 kWh, the subsidy amounts to 292 euros/MWh, namely almost 80 % of the increase is absorbed. For commercial consumers with a supply up to 35 kVA exceeding 2,000 kWh and for all low, medium and high-voltage non-residential tariffs, the subsidy amounts to 134 euros/MWh.

About 700,000 households that use gas will also receive a monthly 20 euros/MWh subsidy.