Filenews 28 July 2022
An additional package of measures to address inflationary pressures was announced by the Ministers of Finance and Energy and concerns 449,000 homes and 111,500 businesses.
Specifically, after the end of the Council of Ministers, the two ministers announced that today they decided on a new program of state subsidy for electricity worth more than €50 million which will cover 449,000 homes and 111,500 businesses.
The subsidy will cover residential, commercial and industrial users of bimonthly tariffs with the invoices as they will be presented in September covering the period July – August.
As announced by the Minister of Finance Konstantinos Petrides, this subsidy will also cover the reintroduction of VAT on electricity to 19%. The Government will pay this money to the EAC, which will adjust accordingly the invoices covering the two-month period July - August, which will be sent in September.
The new package comes in addition to the packages that had been implemented, the cost of which exceeded €300 million. Mr. Petridis said that the subsidy will cover both residential, commercial and industrial users of bimonthly tariffs, thus supporting 449,000 households and 111,500 businesses.
Home
According to the Ministry of Finance, for the tariff of 0.8 and 56b, i.e. vulnerable groups, up to 100% of the upcoming increase in the price of electricity will be covered.
For households with consumption from 1 to 400 kilowatts (Kw) the subsidy will be up to 85% of the increase
For households with consumption from 401 Kw to 600 Kw, 75% of the increase will be covered
For households with consumption from 601kw to 800 Kw, 50% of the increase will be covered
Tariff for Commercial Use
For consumption from 1 Kw to 500 Kw will cover 85% of the increase
For consumption from 501 Kw to 750 Kw will cover 75% of the increase
For consumption from 751 Kw to 1,500 Kw will cover 50% of the increase
Industrial use tariff
From 1 Kw to 750 Kw will be covered up to 85% of the increase
From 751 Kw to 1,000 Kw will be covered up to 75% of the increase
From 1.00 Kw to 1.500 Kw will be covered up to 50% of the increase
"In this way, the measures are also horizontal, but they are also very targeted and will serve mainly the middle strata, but also the vulnerable groups of the population," Mr. Petridis said in his statements, adding that this measure also promotes the savings that are very important, as he said
"Because from the first moment we did not hide the truth, electricity prices and energy prices will remain at high levels. So the permanent and the long-term solution focuses on two factors, one is the saving factor and the second is the integrated planning of the Ministry of Energy and the government in terms of the complete decarbonization of fossil fuels", he stressed.
The MIC said that the VAT on electricity is back to 19%, to stress, however, that this will be covered by the state's sponsorship.
"So the state's sponsorship will cover two parts, the percentage of the increase but also the VAT," he said, explaining that the aid takes a different form.
"Instead of lowering the VAT, this difference will be subsidized by the state," he said, adding that in the tariffs to be sent in September, there will be a 20% to 30% reduction depending on the tariff it falls under.
In response to a question, Mr. Petrides explained that the grant will be paid to the EAC and therefore the invoice that the citizen will receive will be recorded the initial price, the state subsidy and the amount that the citizen will pay.
Pilides: Take advantage of the savings plans
In her own statements, the Minister of Energy Natasa Pilides, after recalling that saving and installing photovoltaic systems is the best method for the permanent reduction of electricity costs, stressed that in addition to these measures, the plans of the Ministry of Energy, which have a very increased budget, continue to apply.
Indicatively, she indicated that by 2020 € 8 million was available annually in the grant schemes, while the budget for 2021 will exceed €120 million, while plans are running for the installation of photovoltaics, for roof thermal insulation for the installation of a water heater, as well as specific plans for vulnerable groups, while the plan of €40 million is also running. "Saving – Upgrading" for businesses, which also encourages savings while subsidizing the installation of photovoltaics, "so that we achieve a permanent reduction in the cost of electricity.
