The limit at which the state will stop subsidizing household electricity bills was determined by the Minister of Environment and Energy.
Kostas Skrekas, during the presentation of the updated National Energy and Climate Plan-ESEK and asked about when the subsidy for electricity bills will stop, said: “When the competitive charges fall to 0.15 to 0.16 euros per kilowatt hour, then the subsidy for households will stop”.
Tiered subsidies
When the Minister of Energy referred to the specific amount, he meant the price lists announced by the electricity providers.
It is noted that PPC with the subsidies granted by the state reaches final electricity prices of 0.15 to 0.16 euros per kilowatt hour.
Asked about the Eurogroup’s recommendations for targeted subsidies, the Minister of Energy commented that Greece applies tiered and not horizontal subsidies.
Surprising prices
For February, there is an upheaval in the electricity bills of households and businesses. Providers are expected to pass on the reductions in TTF natural gas prices to the Greek market.
The result will be, according to business executives’ estimates, the competitive fees they announce on January 20 will be as much as 50% lower than they were this month.
Price lists
The nominal price that the suppliers will give is estimated to be even at the levels of 0.20 to 0.22 euros/kWh, when for January the range was from 0.35 to 0.49 euros/kWh.
If these forecasts are confirmed, then the subsidies announced by the Ministry of Environment and Energy will lead the final electricity prices to summer 2021 levels.
The pricing method
The large TTF reductions did not pass through to the retail Greek electricity market.
This is because the sellers of natural gas to power producers price based on the previous month’s prices. In February, the power companies will integrate the reductions and then the benefit will pass to consumption from the big jump in natural gas.
The TTF since December 15, when it was at 135 euros/MWh, has plunged more than 50% to the levels of 63 euros/MWh.
Latest News
Greek Property Renovation Surge amid Economic Constraints
This has led to a notable escalation in renovation costs, with average prices per square meter exceeding previous norms and reaching even 1,000 euros in premium locations
RRF: Additional €5.1bln Funds for Subsidies to Greece in 2025
By April 22, funds totaling 5.75 billion euros had been transferred for approved projects of the Recovery Fund to entities within and outside the general government and final recipients
OECD: Greek Economy Resilient with 2% Growth Forecast for 2024
However, the OECD highlights challenges including the need to enhance productivity and fiscal adjustment due to high debt levels.
Challenges and Delays in Greece’s Hydrocarbon Exploration
Sources disclose that the petroleum companies holding the concessions are seeking partners to jointly invest and share the costs of exploration and drilling.
Greek Beach Visitors Can Report Violations on New ‘MyCoast’ App
Greek authorities hope the newly-launched, free ‘MyCoast’ app will help clamp down on public beach violations
BoG Figures Confirm Banner Year for Greek Tourism in 2023
20.6 billion euros in related revenues topped the previous year’s figure by 16.5%
Piraeus Bank to Propose First Dividend in 16 Years
Piraeus Bank has forecast profits of roughly 900 million euros this year, rising to one billion euros next year
Eurostat: Inflation in Greece Eases to 3.2% in April; 2.4% in Eurozone
The rate of increase for food prices was up by 4.9% in April 2024, compared to 4.8% in the previous month
ELSTAT Feb. Retail Turnover Drops by 3.8%, Sales Volume Plummets by 9.8%
Additionally, the seasonally adjusted General Volume Index for Feb. 2024 experienced a 3.8% decrease compared to the previous month of the same year
Greek Buyers Lead Return to Vacation Home Market
In the last six months, Greeks have made a surge into the vacation home market, notably without relying on loans