More than half of the households will receive a heating subsidy next winter, according to the estimates of the Ministry of Environment and Energy, following the decision to extend the subsidy to households heated with electricity
The supports provided for today include the heating allowance with beneficiaries of 1.2 million households for which applications are about to start, the electricity allowance which will apply from 1.1.2024 for another 1.2 million beneficiaries, the Social Household Tariffs (CTO) that were already in force and the new CTO for many children that is being enacted now.
-The heating allowance for the period 2023 – 2024 is granted to natural persons for the consumption of heating oil, lighting oil, natural gas, LPG, firewood, and biomass or thermal energy through district heating. The criteria are:
The annual family income must be up to 16,000 Euro for a single member household and 24,000 Euro for the couple plus 5,000 Euro for each child. For a single-parent family, the limit is 29,000 Euros, plus 5,000 Euros for each child after the first. For the first time this year, the criterion is that the total gross income of the household from business activity does not exceed the amount of 80,000 Euros, in order to better target the beneficiaries. The value of the real estate (as calculated for the determination of the ENFIA), must not exceed 200,000 Euros for singles, widowed or separated debtors and 300,000 Euros for married or cohabiting parties and single-parent families.
To calculate the allowance, a number of factors are taken into account, such as the severity of the climate of each region and the required energy consumption to heat a building.
The allowance that each beneficiary will receive cannot be less than 100 Euros, nor exceed 800 Euros. The maximum amount increases up to the amount of 1,000 Euro for settlements with increased energy needs. Only one type of fuel may be subsidized per beneficiary and for purchases of at least twice the value of the subsidized types of heating fuel.
The start of applications is expected within the first fortnight of November. If the application is submitted by the potential beneficiaries by 8 December 2023, then they will receive as an advance the amount of the allowance paid to them during last year 2022-2023 and half of the amount if they had received an increased heating allowance due to their transfer from natural gas to oil.
–Allowance for heating with electricity:
It will be applied to consumption from 1-1-2024 (until then the horizontal subsidies on electricity consumption are still valid) until 31-3-2024 with the same criteria that apply to the heating allowance. Applications will also be submitted on the myheating platform of AADE while the subsidy will be paid through electricity bills.
The beneficiaries are estimated at 1.2 million and the amount of the subsidy is scaled from 45 to 480 euros per quarter, again based on the system for calculating the thermal needs applied to the oil subsidy.
–Multi-child invoice: A discount of 100 Euro/MWh is foreseen in the charge which means for an average consumption, an annual discount of 500 Euro for consumptions up to 2000 kilowatt hours per four months for a family with 4 children plus 200 kilowatt hours for each child with a maximum of 4000 kilowatt hours. The subsidy increases to 120 euros per megawatt hour if the savings target is met. In addition, those with many children are exempt from network charges within the limits of consumption and YKO. The income criteria are expanded to 50,000 euros for a family with 4 children plus 2,500 euros for each additional child with a limit of 70,000 and without an asset criterion to include approximately 95% of those with many children.
–Social Household Tariff A: include those who meet the criteria for receiving Social Solidarity Income (real estate up to 90,000 euros for a one-person household, plus 15,000 euros for each additional member and up to 150,000 euros), income 1200-3000 euros. The subsidy is 7.5 cents per kilowatt-hour, with consumption limits based on household size.
– Social Household Tariff B: households with real estate up to 120,000 euros for the one-person household, plus 15,000 euros for each additional member and up to 180,000 euros and an income of 9,000-27,000 euros depending on the number of members are included. 4,500 euros are added for each additional adult member and 2,250 euros for each additional minor member, up to 31,500 euros regardless of the number of household members. In this case the discount is 4.5 cents per kilowatt hour.
The following are examples of subsidies for energy-vulnerable households that will be entitled for the first time from 1.1.2024 to a subsidy for heating with electricity:
-Married with one dependent child, with an annual family income of Euro28,500, gross income from business activity of Euro79,500 and real estate with an objective value of Euro299,500. Her main residence is in the area of Kozani, which is among the settlements with severe cold during the winter months. The total value of the electricity bills for the consumption period from 1.1.2024 to 31.3.2024 amounts to Euro800 and the subsidy is 302.40 Euro.
-A large family with 4 dependent children, with an annual family income of 25,000 euros, and real estate worth 170,000 thousand euros, therefore it is included in CTO B. Its four-month consumption amounts to 2,000 kWh. With the KOT B tariff, he receives a discount of 90 euros per four months for the 2,000 kWh of consumption, so he receives a maximum of 270 euros per year. With the new KOT C tariff, which is instituted specifically for those with many children, they are entitled to a subsidy of 200 euros (100 euros/MWh) for the 2,000 kWh consumption of the four months. Therefore, annually, he will now receive 600 euros, while in case he also achieves the savings goal, the total discount can rise up to 720 euros per year.
-A large family with 4 dependent children, with a family income of 40,000 euros, and real estate worth 200,000 euros, does not belong to any KOT category to date, therefore does not receive any discount for the four-monthly consumption of 2,000 kWh. In the new CTO C, there are no property criteria while the income criteria are increased compared to the existing CTO, and start at 50,000 euros for a large family with 4 dependent members. Therefore, the family is a beneficiary of the KOT C tariff and is entitled to a subsidy of 200 euros (100 Euro/MWh) for the 2,000 kWh of four-monthly consumption. Thus, he will receive 600 euros per year, while in case he also achieves the savings goal of the new tariff, the subsidy can rise up to 720 euros per year.