Filenews 29 July 2022 - by Eleftheria Paizanou
Automatically, the discount on EAC bills that consumers will receive in September and will concern electricity consumption for the period July-August will be made and deducted. The discount will be through subsidizing the increase in the price of electricity during the two aforementioned months. At the same time, VAT is restored to 19% (today it is 5% for vulnerable consumers and 9% for households).
Yesterday, the Ministry decided to implement a new program of state subsidy for electricity, worth more than €50 million, which will cover 449,000 homes and 111,500 businesses. According to the Government, this is a targeted measure, with the additional aim of encouraging savings.
VULNERABLES
- For vulnerable consumers (tariffs 08 and 56B), 100% of the upcoming increase in the price of electricity will be covered. For example, a vulnerable consumer with a consumption of 800 kilowatt hours (kWh), without the subsidy, would pay €289.36 and with the subsidy will pay about €220.64, i.e. the subsidy will be €68.72.
DOMESTIC CONSUMERS
- For residential consumers, the increase will be staggered and an amount of 50% to 85% of the increase in the charge will be subsidized, depending on the consumption of July -August. For a monthly consumption of 1-400 kilowatt hours (kWh) the subsidy will be up to 85%, for consumption of 401-600 kWh the subsidy will be up to 75% and for consumption of 601-800 kWh the discount on the increase will cover up to 50%. For example, if a domestic consumer consumes 1000 kilowatt-hours in that period, then the state will subsidize the increase only for 800 kilowatt hours, with 50% of the increase.
For a residential tariff with a consumption of 800kwh, the consumer without subsidy would pay €322.44, while after the subsidy he will pay about €256.72. That is, it will have a reduction of €65.72. Also, for a residential tariff with a consumption of 1500kwh, the consumer would pay €597.24, while with the subsidy he will pay about €531.52. That is, the subsidy of the increase will be €65.72.
COMMERCIAL CONSUMERS
In relation to the commercial use of electricity, the subsidy will be made as follows:
- For bimonthly consumption of 1-500 kWh, the subsidy will be up to 85%
-For consumption of 501-750 kWh the subsidy will be up to 75% and for consumption of 751-1500 kWh the subsidy will be up to 50%. For example, the subsidy on an invoice for commercial use with a consumption of 1200 Kwh, the subsidy will be almost €67. Specifically, without the subsidy, this commercial consumer would pay €483.89 and with the subsidy he will pay approximately €416.93.
What applies to industrial consumers
For industrial use, the following will apply:
- For bimonthly consumption of 1-750 kWh the subsidy will be up to 85%
- For bimonthly consumption of 751-1000 kWh the subsidy will be up to 75%
- For bimonthly consumption of 1001-1500 kWh, subsidy up to 50%
More than 1500 KWh there will be no subsidy. For example, in case of consumption of 2000 KWh the increase up to 1500 KWh will be subsidized and for the remaining kilowatt hours the increase will be imposed normally.
The finance minister said that with the total subsidy that will be made in all categories, in the tariffs that will be sent in September there will be a 20% to 30% reduction, depending on the tariff. The Minister of Energy stressed that in addition to these measures, the plans for permanent electricity saving continue to apply.
POINT OF VIEW
Given the referrals of laws
Instead of extending the tax cut, the government chose to implement the subsidy measure to relieve consumers of increased inflationary pressures. The formula of subsidizing electricity is also applied by other countries. Perhaps one of the reasons why the government did not extend the VAT reduction was because it would disproportionately reduce its tax revenues, but with its practice it will probably eventually refund the VAT to consumers. However, the new measures may be a sign that the President will proceed to refer the opposition's laws back.
