Filenews 2 July 2022 - by Chrysanthos Manolis
The presidential alarm for measures against the accuracy of electricity is invalid. Those who expected to hear new decisions of the Government yesterday to reduce taxes on electricity or to impose a cap on electricity tariffs, were disappointed. During yesterday's meeting at the Presidential Palace, under the President, in the presence of the Ministers of Finance and Energy and the leadership of the Regulatory Authority for Energy and the EAC, no decision was consciously taken that leads to a horizontal and brief reduction of the burden on energy consumers. A discreet commitment was, however, made to... consider granting discount vouchers, only for economically vulnerable households.
The Government decided not to proceed with any further horizontal relief measures and to focus, after August, on targeted measures in favour of vulnerable households. It was decided, in particular, to evaluate new measures that could be implemented after the expiry of the existing measures (31 August). The decision not to burden any more - with a new discount on tariffs or network costs - the reserves of EAC, which have been dangerously reduced, seems to be final.
Those who expected to hear yesterday new decisions of the Government to reduce taxes on electricity or to impose a cap on electricity tariffs, for some relief for consumers, were probably disappointed. The government's decision not to proceed with other horizontal relief measures and to focus, after August, on targeted measures in favour of vulnerable households seems to be final. The decision not to burden any more - with a new discount on tariffs or network costs - the reserves of the EAC, which have been dangerously reduced and it took a few weeks ago to increase the electricity tariffs, seems to be final.
The most tangible decision taken yesterday concerns the realization of a major campaign to enlighten and inform the public about the options and ways to save energy and money, something that other European governments are also promoting, which is also being pushed, not only by inflation, for a reduction in the consumption of electricity fuel but also of fuel used in industry, as there is a serious possibility of a shortage of sufficient quantities of natural gas in the winter.
As it is until August
Regarding the possibility of taking new measures to reduce the cost of electricity, even for households with low incomes, the meeting simply decided to evaluate new measures that could be implemented, after the end of the existing measures that expire on August 31 (the VAT reduction to 9% for the large mass of consumers and to 5% for vulnerable people applies). Therefore, no new relief measures are expected until at least August.
The interests of yesterday's meeting include the decision to evaluate the possibility of granting vouchers to economically vulnerable households, in order to address energy poverty, in accordance with the European Union's toolbox, which gave directions to member states to relieve consumers from fuel price increases. If the voucher measure is finally adopted, vulnerable consumers will be able to pay part of the electricity charge with the vouchers. Already, vulnerable EAC customers benefit from a discount of about 20% on charges. Obviously, it was preferable to discuss the solution of vouchers rather than the provision of a lump sum-subsidy, in order to ensure that state aid would actually result in a reduction in the burden of electricity on the beneficiary households and not on other needs. There remains open a small possibility that the voucher solution will also be used to alleviate the cost of motor fuel to households.
