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Electricity subsidies cut in February
  • 30 Apr 2023
  • economy

The expectation of households and businesses to breathe a sigh of relief in February from the reduced electricity prices announced by the suppliers is cancelled.

The drastic reduction in subsidies announced by the Ministry of Environment and Energy leaves them literally exposed, at a time when consumption is increasing, due to a change in climate conditions. From the announcements of K. Skrekas it follows:

The reduced subsidy of 0.04 euros per kilowatt-hour will be received only by those households with consumptions of up to 500 kilowatt-hours per month (the percentage according to the minister is 90%).
No subsidy is provided for more than 500 kilowatt hours per month. In order for a household to receive a subsidy of 0.04 euros per kilowatt-hour in the event that it exceeds 500 kilowatt-hours per month, it will have to demonstrate a 15% reduction in consumption compared to the corresponding period of 2022.
The bonus of 0.05 euros per kilowatt-hour is abolished for households that consume more than 500 kilowatt-hours if they reduce their consumption by 15% compared to the corresponding month last year.
Additional subsidies for small businesses up to and over 35 kva are abolished. Everyone will get a subsidy of 0.02 euros per kilowatt hour.
The natural gas subsidy is also abolished

The minister noted in his statements that "today, we are in a period of drastic de-escalation of international natural gas prices, as a result of the adoption of a European mechanism for imposing a ceiling on Natural Gas".

"The crisis in this period has eased, however, it is not over", he added. "We have supported society all this time that we have allocated a total of 8.2 billion euros so far for electricity bills. We will be the same next to everyone in February, when the tariffs of the providers are lower by 65% compared to the previous one".

Examples of the benefit of electricity subsidies

From 16 to 48 euros, the benefit of households from the subsidies for electricity consumption in February escalates, according to the indicative examples published by the Ministry of Environment and Energy.

Specifically:

A household with a monthly consumption of 400 kilowatt hours would pay 80 euros without the subsidy and 64 euros with the subsidy.
A household with a monthly consumption of 700 kilowatt hours would pay without the subsidy 139 euros and with the subsidy (up to 500 kilowatt hours) would pay 119 euros. If he achieves the 15% energy saving target, he will also have a discount for consumption over 500 kilowatt hours and will ultimately pay 111 euros.
A household with a monthly consumption of 1,200 kilowatt hours would pay without the subsidy 239 euros and with the subsidy (up to 500 kilowatt hours) would pay 219 euros. If he achieves the 15% energy saving target, he will also have a discount for consumption over 500 kilowatt hours and will ultimately pay 191 euros.

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