New support measures for households and businesses

New support measures for households and businesses

ATHENS. In January, the government will support households, farmers and businesses with €400 million.

07
Ιανουαρίου / 2022

The Minister for the Environment and Energy Kostas Skrekas announced the new support measures decided by the government for households and businesses due to the price increases caused by the international energy crisis.
 
Earlier, Prime Minister Kyriakos Mitsotakis noted that in January the government will support households, farmers and businesses with €400 million, covering a significant part of the increases in electricity bills.
 
“The focus is, obviously, on relieving our households. But we will also help businesses stay on track for growth, preserving valuable jobs. And, mainly, we want to avoid increasing production cost and passing it on, in turn, to the product prices,” said the Prime Minister.
 
The funds come from the auctions of CO2 emission allowances and the increased revenues of the special account for Renewable Energy Sources. More specifically, according to what the Minister for the Environment and Energy Kostas Skrekas announced, the subsidies for January are the following:
 
 
The measures announced
 
Electricity price subsidies for households
 
All main residence benefits will be subsidised (about 4.2 million benefits) regardless of income or house size. The total value of the subsidy will amount to €157 million.
 
The subsidy will be as follows:
- for the first 150 KWh of consumption per month, 80% of the increase will be subsidised with €160/MWh (i.e. €24)
- for monthly consumption from 151-300 kWh, 60% of the increase will be subsidised with €120/MWh (i.e. €18).

 
In total, for the first 300 kWh the subsidy will be €42 per month, when in December 2021 it was €49.5, in November €39, in October €18 and last September €9.
 
For households that are included in the Social Domestic Invoice the subsidy will rise to €180/MWh, i.e. €54 per month. The total value of the subsidy amounts to €157 million.
 
Electricity price subsidies in Commercial Invoices
 
All professionals and businesses will be subsidised on all non-domestic invoices, i.e. agricultural, commercial, industrial, business etc. The subsidy is set at €65/MWh.
 
The total subsidy measure for businesses in January is estimated at €133 million.
 
Specifically, Low Voltage Businesses will be subsidised with €74,128,994, Medium Voltage Businesses (with less than 13 GWh) with €41,562,529, Medium Voltage Businesses (with more than 13 GWh) with €8,226,919, Industrial High Voltage Electricity with €2,697,917, Agricultural Low Voltage Electricity with €5,528,916 and Agricultural Medium Voltage Electricity with €611,672.
 
From February onwards, it is being considered to adjust, in cooperation with the European Competition Commission, the subsidy by professional sector according to the weight of energy cost in the operation of the business.
 
It should be noted that from November 2021 to March 2022, the suspension of payment of the charges of the services of general interest for Medium Voltage Businesses is in force.
 
 
€1.3 billion have been allocated since September
 
Mr. Skrekas said that this is the fifth month that households are being supported during this unprecedented energy crisis. Since last September, a total of more than €1.3 billion has been made available, while for January the support measures are extended to professionals and businesses who are also being brutally hit by the huge increases in energy prices.
 
“The financial support to all businesses – small, medium-sized and large businesses – received the approval of the European Competition Commission and for this I want to thank the European Commissioner for Competition Mrs. Vestager, as well as the members of the Commission who worked with us,” said the Minister, adding that Greece is the first EU country to submit a proposal for state aid to businesses in 2022 to the Directorate for Competition for the energy crisis and received approval.
 
 
Natural gas price subsidies to households
 
The subsidy will amount to €20/MWh for all suppliers for the entire monthly consumption. It concerns 540,000 household consumers regardless of income or house size. An additional discount of €20/MWh for all monthly consumption will be given by DEPA (Public Gas Corporation of Greece) Commercial to its customers and the necessary contribution will be requested from the rest of the suppliers in collaboration with DEPA.
 
The total amount of the subsidy from the government and DEPA will amount to €54 million for January, a month for which the average natural gas price is estimated at €114/MWh. The measure will be re-evaluated every month and the unit price of the subsidy will be adjusted.
 
 
Natural gas price subsidies in Commercial & Industrial Invoices
 
The natural gas subsidy is extended for January 2022, which will be at €30/MWh, in order to cover the additional costs incurred by all commercial consumers and the industry regardless of size, turnover and number of employees. The total value of the subsidy amounts to €51 million for January.

Source: IN.GR