Filenews 27 April 2024 - by Angelos Angelodimou
In the summer, the subsidy of the price of electricity will end, after the last extension given to this consumer support measure, which means that increases are expected in the months with the highest electricity consumption, due to the use of air conditioning systems.
In particular, the electricity price subsidy has been extended until June 30, without the Government having expressed any intention for a new extension for the time being. This means that in July and August, with much higher electricity demand compared to other months, EAC charges will increase.
This has already begun to cause concern, given that: Currently, Brent oil prices on the international market are at high levels ($ 89.5 per barrel yesterday) while retail prices of motor fuels are also rising.
However, the increase in electricity prices (due to fuel costs) will be delayed, given that EAC maintains stocks for a period of two months. Therefore, both the end of the subsidy and the increases that are expected to occur due to the price of fuel will coincide during the summer months, a development that will hit consumers.
Even today, however, the current electricity price subsidy does not seem to be of much help to consumers. This is because, according to the latest revision made by the Government, the subsidy is calculated according to the increase in energy costs compared to the tariffs in force in June 2022. So, due to the fall in the price of oil in the previous period, the final price of kilowatt hour was slightly reduced, with the result that today an average household benefits only with an amount of €20 per two months from the subsidy, instead of €70 and €80 that was the benefit a few months ago.
Brent oil prices have risen slightly over the past 48 hours after a downturn earlier this week. Specifically, Brent crude for June delivery was hovering yesterday just above $ 89 per barrel (previously it had fallen to $ 86-87), while, on the other side of the Atlantic, U.S. WTI crude is at $ 83 per barrel.
