Filenews 8 July 2022 - by Eleftheria Paizanou
The surge in electricity charges, due to the increase in oil prices internationally, is leading to a plight for thousands of households of small and medium-sized or vulnerable consumers. As a result, many EAC customers are unable to pay the inflated bills and are disconnected from the network. Yesterday, ELAM submitted to the Parliament a proposal for a law, which calls for the introduction of a new provision in the Law on Electricity, so that the EAC cannot cut off electricity to any consumer, provided that the government will issue relevant decrees.
According to the explanatory memorandum, the proposal is that the law is amended so that in a period of extraordinary and exceptional circumstances, during which relevant ministerial decrees were issued, the contractors, for as long as the specific period lasts, will not be able to cut off the supply of electricity, removing or interrupting any electrical line or other project, through which electricity can be supplied to the premises.
At this time, due to the increased inflationary trends, the situation is very difficult for many households, which is why many times the parties called on the EAC to proceed with measures to support them. On the other hand, EAC argues that the responsibility for exercising social policy lies with the government and not its own.
It is reminded that in the context of the measures taken by the government last month, until August 31, 2022, the reduced tax rate on VAT on electricity will be applied. Specifically, by the end of the summer, 250,000 households will pay reduced VAT from 19% to 9% and 34,000 vulnerable consumers will pay 5% VAT. Also, by the end of August, a reduced consumption tax will be imposed on motor and heating fuels. Due to the continuation of the difficult situation, the government is considering extending the reductions in excise duties on fuel and VAT on electricity until the end of the year.
