Different model from Power Pass will have the subsidy to drift in order not to inflate too much accounts.
In his meeting with the President of the Republic, Prime Minister Kyriakos Mitsotakis said: “At the national level we are implementing a plan to support the electricity bills through the neutralization of the readjustment clause but also the recycling of the surplus profits of electricity producers”.
Interventions to reduce the price of natural gas are expected to be announced next week. Intervention at the pump will be announced regarding heating oil and also an expanded heating allowance.
The new electricity subsidy
The way electricity is subsidized, however, will not resemble his model Power Pass.
The government’s main scenario is to give a lower basic subsidy to households and businesses, which will ensure an extra amount depending on the consumption reduction target.
But if this is simpler for households, the same is not the case for businesses whose electricity needs are inelastic. The measure will need the power consumption history of the supply, which makes the task difficult.
Another scenario on the table is the escalating boost in bills inversely according to consumption. The lower the consumption, the higher the subsidy. “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, regarding the subsidization of electricity bills.
When the Power Pass payment
Its beneficiaries will have to wait a few more days Power Pass to get the extra money earmarked for the June bills. The lump sum payment will be delayed for a few more days. According to information, those who received a settlement letter from the electricity provider in June are expected to receive the Power Pass in a maximum of 8 days. Most likely the payment will be made next week.
In particular, it is recalled that most of the money was announced by the Ministry of Finance because 20 million euros were effectively “surplus” from the implementation of the program for the period from December 2021 to May 2022. This amount will be shared by those who have already been approved in the first round.
Of course, the money that the beneficiaries will see will be much smaller, even than the July payments, when very few were able to get more than 40 euros for the whole semester. Even among those who met the criteria, there were several who did not receive an electricity allowance, since amounts under 18 euros that were settled are not paid.
Who won’t get a Power Pass in September?
In summary, they won’t be getting a Power Pass this time around:
- Those who did not manage to apply within the deadline
- Those who were not paid even the first time
End of Power Pass 2 and Fuel Pass 3
Finally, the information was confirmed and the new rounds for electricity allowance and fuel allowance came out of the list of measures at TIF.
No mention was made of these two allowances either during the prime minister’s speech or the press conference. On the contrary, the 250 euro precision check was announced but with a cutter for thousands of beneficiaries, a heating allowance which will in fact be double for those who return to oil and other measures.