They “write” and “delete” in the ministries about the new electricity subsidy and the incentives and disincentives that will determine its amount per household.
The government recognizes that paying electricity bills is the main breadwinner for families and tries to find the solution to difficult equation to simultaneously achieve: fair subsidy that will relieve the family budget, at the same time to reduce consumption but also not to derail the budget.
Mitsotakis: A bill support plan is in place
In his meeting with the President of the Republic, Prime Minister Kyriakos Mitsotakis stated that: “At the national level we are implementing a plan to support electricity bills through the neutralization of the readjustment clause but also the recycling of the surplus profits of electricity producers.
Next week, interventions will be announced to reduce the price of natural gas, there will be intervention at the pump in terms of heating oil, but also an expanded heating allowance.”
The difficult equation of the new Power Pass
The method of subsidizing electricity seems not to be very similar to the Power Pass model. And this as the government has to solve the riddle.
The main scenarios that the government is considering are: to give a lower basic subsidy to households and businesses, which would secure an extra amount depending on some reduction target of consumption. But if this is simpler for households the same is not the case for businesses where their power needs they are primarily inelastic. Still the specific measure you will need the current consumption history of the supplywhich adds an extra degree of difficulty to the project.
Another scenario is the escalating support in the bills inversely according to the consumption. The lower the consumption, the higher the subsidy.
Skrekas: Greek society has realized the magnitude of the crisis
“Financial incentive schemes are being considered that will be combined with the reduction of consumption in households and businesses” said the Minister of Environment and Energy Kostas Skrekas asked about subsidizing electricity bills.
He noted that Greek society has realized the magnitude of the crisis and has already proceeded with a 22% reduction in natural gas consumption in July, while in the same month electricity consumption decreased by 13%.
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