European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure GR-2021-36/2379 Updated – measures in Greece

Electricity subsidy for consumers

Epidotisi ilektrikis energias katanloton apo tin kivernisi (Επιδότηση ηλεκτρικής ενέργειας καταναλωτών από την κυβέρνηση

Country Greece , applies nationwide
Time period Open ended, started on 01 September 2021
Context COVID-19, War in Ukraine
Type Legislations or other statutory regulations
Category Responses to inflation
– Support for energy bills
Author Penny Georgiadou (INE GSEE)
Measure added 20 May 2022 (updated 26 September 2022)

Background information

One of the most important consequences of the international crisis caused by the pandemic and the war in Ukraine is the increase in the price of energy, which has disproportionately burdened family budgets.

In this context, the Greek government has taken measures to subsidize the electricity of domestic consumers and consumers of special tariffs (CTO - social residential tariff and TIA - Solidarity Services’ Tariff). A series of Joint Ministerial Decisions (KYA) of the Ministers of Finance and Energy provided for the financing of electricity for the period from September 2021 to March 2022, which are detailed.

  • Decision No 109471/1763 on 18 November 2021, for the period September to December 2021.
  • Decision No 12468/434 on nine February 2022 and JMD No 23632/859 on 10 March 2022, for the period From January to March 2022.

The measure was extended by newer Ministerial Decisions for April and May 2022.

Content of measure

Regarding the period from September to December 2021, the electricity subsidy is granted to all the beneficiaries for the consumption of the first 300 MWh of each month as follows:

  • Residential consumers, with variable tariffs, are subsidized €30 for September, €60 for October, €130 for November and December per consumed MWh.
  • Beneficiaries of CTO and TIA with variable tariffs are subsidized with €30 per MWh for September, €80 for October, €150 for November and December.
  • Consumers without price readjustment clauses are subsidized with €20 per MWh for each month.

For the period from January to March 2022 the following apply:

  • Residential consumers, with variable tariffs, are subsidized in January for the first 150 MWh of the month with €160 per MWh and for the next 150 MWh with €120. For the months February and March for the first 150 MWh with €150 per MWh and for the next 150 MWh with €110 per MWh.
  • Beneficiaries of CTO are subsidized with €180 per MWh for the first 300 MWh and €170 for the first 300 MWh for the months of February and March.

The subsidy is deducted from the electricity bill.

Updates

The following updates to this measure have been made after it came into effect.

10 August 2022

On 10 August 2022, the Greek government issued a Joint Ministerial Decision (KYA) No 82559/2774 (FEK Β 4248), extending the electricity subsidy for the consumers regarding the month of July as follows:

  • Residential consumers, having variable tariffs, are subsidized with €200 per MWh regardless of the level of the consumption.
  • Beneficiaries of CTO are subsidized with €240 per MWh regardless of the level of the consumption.
01 July 2022

On 1 July 2022, the Greek government issued a Joint Ministerial Decision (KYA) No 67077/2333 (FEK Β 3375), extending the electricity subsidy for the consumers regarding the month of June as follows:

  • Residential consumers, having variable tariffs, are subsidized with €185 for the cost of the first 150 MWh of April and with €140 for the consumption of the next 150 MWh. Beyond this level, the subsidy is confined to the €100 per MWh.
  • Beneficiaries of CTO are subsidized with €195 per MWh regardless of the level of the consumption.
02 June 2022

On 2 June 2022, the Greek government issued a Joint Ministerial Decision (KYA) No 55625/1962 (FEK B2759), extending the electricity subsidy for the consumers regarding the month of May as follows:

  • Residential consumers, having variable tariffs, are subsidized with €205 for the cost of the first 150 MWh of April and with €160 for the consumption of the next 150 MWh. Beyond this level, the subsidy is confined to the €100 per MWh.
  • Beneficiaries of CTO are subsidized with €215 per MWh regardless of the level of the consumption.
07 April 2022

On 7 April 2022, the Greek government issued a Joint Ministerial Decision (KYA) No 32752/1241 (FEK Β 1670), extending the electricity subsidy for the consumers regarding the month of April as follows:

  • Residential consumers, having variable tariffs, are subsidized with €270 for the cost of the first 150 MWh of April and with €210 for the consumption of the next 150 MWh.
  • Beneficiaries of CTO are subsidized with €290 per MWh regardless of the level of the consumption.

Use of measure

According to the Minister of Environment and Energy, the state subsidy of electricity for households in February 2022 amounts about to €150 million and concerns all the energy supplies of the main residence, approximately 4.2 million supplies.

On 25 July 2022, the Minister of Energy announced the extension of the subsidy on electricity bills for August 2022 for households. The subsidy for main and non-main residences amounts to €337 per MWh for the entire monthly consumption and regardless income criteria. Due to this measure, the subsidy covered 90% of the increase in electricity. For the beneficiaries of CTO (having a special social electricity tariff), the subsidy amounts to €377 per MWh and covers almost the 100% of the increase.

On 23 August 2022, the Minister of Energy announced the extension of the subsidy on electricity bills for September 2022 for households. The subsidy for main and non-main residences amounts to €639 per MWh for the entire monthly consumption and regardless income criteria. Due to this measure, the 94% of the increase in electricity is covered by the subsidy. For the beneficiaries of CTO (having a special social electricity tariff), the subsidy amounts to €677 per MWh and covers almost the 100% of the increase. The measure covers approximately six million households and the total amount of the subsidy for September amounts to €748 million.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

There was no involvement of social partners.

Views and reactions

There were no social partner's reactions to the measure detected.

Sources

Citation

Eurofound (2022), Electricity subsidy for consumers, measure GR-2021-36/2379 (measures in Greece), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/GR-2021-36_2379.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofound’s EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.