ENERGY

Gov’t tables gas subsidy clause

Support will concern all household consumers of the fuel, and cost up to 100 million euros

gov-t-tables-gas-subsidy-clause

The government on Thursday submitted an amendment to Parliament providing for the subsidy not only of electricity bills but also those for natural gas.

The intention of the government is that beyond household electricity consumers, the state will also horizontally subsidize all 550,000 household natural gas consumers from October 15, when the heating period begins, up to the end of the year at this stage.

The options currently under examination provide for the level of the subsidy to range between 35 and 45 euros per megawatt hour, for which the state will have to spend between €63 million and €100 million from the budget.

On the other hand, the sum announced for the subsidy of power bills, at a rate of €30/MWh, will rise from €150 million to €180 million and originate in its entirety from the revenues of the emission rights auctions.

The amendment tabled in the House provides for the creation of a special account bearing the name “Energy Transition Fund,” which will be financed by the emission rights auctions, but with an option for funding from the state budget too.

The criteria for eligible consumers, the level of the subsidy in euros per MWh – or megawatt hours thermal (MWhth) in the case of natural gas – the procedure and the means and time of the subsidy’s concession will be determined by a joint decision from the ministries of Finance and Energy.

The Energy Ministry has said the subsidy concerns the period from September to December. Power suppliers this month price the consumption in September, and, according to what minister Kostas Skrekas has announced, they will need to modify their information systems to incorporate the special note about the subsidy amounting to 9 euros per month.

Most suppliers are said to have already ordered the IT companies they cooperate with to implement the necessary modifications on the bills, even though the necessary ministerial decision has not been issued yet.