Greece will spend almost 2 billion euros ($1.98 billion) subsidizing rising power bills in September as energy prices continue to climb across Europe.
(Bloomberg) — Greece will spend almost 2 billion euros ($1.98 billion) subsidizing rising power bills in September as energy prices continue to climb across Europe.
Greece, which put in place a subsidy program last year, is among countries across the region to offer assistance to homes and businesses as a severe energy crunch sends prices soaring.
The state will cover 94% of the increase in power bills for most households next month, with the poorest receiving almost 100% support, Energy Minister Konstantinos Skrekas said in televised comments. Small and medium-sized businesses will get 89% of the hike covered, and farmers as much as 90%.
The total cost of the subsidies in September will be 1.9 billion euros, up from just under 1.14 billion euros in August, he said, predicting a “winter full of challenges and difficulties in terms of supply adequacy and energy prices.”
The subsidy system is funded by the national budget, by a special energy-transition fund and — since July — by a tax on power producers.
The mechanism to tax generators’ surplus revenue is estimated to have benefited consumers to the amount of 1 billion euros, Skrekas said.
As of July 25, electricity supply companies in Greece are required to inform customers of prices for the following month, and consumers can change providers if they wish free of charge.