Greece Raises July Energy Subsidies for Homes and Businesses

A total of 722 million euros in support to Greeks hit by the energy crisis and the soaring electricity costs will apply to all users irrelevant of income, said Greek Environment and Energy Minister Kostas Skrekas today, announcing rebates for July.

The government has gone ahead an increased subsidies by 300 million euros in July compared to the previous month. The support concerns both homeowners and professionals.

More specifically, Skrekas announced that the government would absorb 80 percent of the increase by subsidizing all household users with 200 euros per megawatt hour (0.20 per kilowatt hour), regardless of income or total consumption in July.

At the same time, Finance Minister Christos Staikouras also announced that subsidies under the Power Pass program would be deposited by July 15.

Greeks have been hard hit by inflation and energy prices which have reached historic highs with the average price of electricity more than doubling so far this year, reaching 170 euros per megawatt hour.

Last month, Prime Minister Kyriakos Mitsotakis announced a 3.2-billion-euro energy scheme that included rebates on electricity bills for May, June and July in efforts to ease the impact of soaring energy costs on households and businesses.

Additionally, consumers belonging to vulnerable groups on reduced rate schemes will receive a 240-euro rebate per megawatt hour, covering 100 percent of the increase.

Small and medium-sized businesses, including convenience stores, bakeries, hair salons, and dozens of tourist enterprises, will receive a subsidy of 192 euros per megawatt hour, with the state absorbing up to 82 percent of the increase in electricity rates. The aid increases to 213 euros per megawatt hour in rural areas with the state absorbing up to 90 percent of the increase.

Professional and industrial consumers are entitled to a 148-euro rebate per megawatt hour.

To cover the increase in natural gas, subsidies amount to 30 euros per thermal megawatt hour.

In total, the minister said, subsidies to ease energy costs are set to reach 5 billion euros by the end of July.

Greek Environment and Energy Minister Kostas Skrekas

“We are going through an unprecedented energy crisis that is impacting households and businesses across Europe. The economic and social burden is unbearable. The latest energy surges have been compounded by the selective reduction of natural gas flows from Russia to Europe. This is a completely negative development that has pushed natural gas prices to unimaginable heights. The mix is ​​explosive and rightfully creates concern among European citizens and leaders,” said Skrekas, urging the European Union to “respond in a timely, coordinated and effective manner” and adding that Greece has formulated a comprehensive plan to address the crisis.