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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-2021-45/2410 Updated – measures in Greece

Electricity subsidy for companies

Epidotisi elektrikis energias epihiriseon apo tin kivernisi (Επιδότηση ηλεκτρικής ενέργειας επιχειρήσεων από την κυβέρνηση

Country Greece , applies nationwide
Time period Temporary, 01 November 2021 – 30 September 2022
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 24 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 has been the increase in the price of energy, which has disproportionately burdened the production costs of businesses. In this context, the Greek government has taken electricity subsidy measures to support businesses. A series of Joint Ministerial Decisions (KYA) of the Ministers of Finance and Energy provided for subsidizing the electricity cost for the period from September 2021 to April 2022, which are:

  • KYA No 12477/435 of ninth February 2022 and KYA No 23656/860 of 10 March 2022, for the period From January to March 2022
  • KYA No 32753/1242 of fourth April 2022, for the April 2022

Content of measure

The measures taken by government to subsidize businesses to reduce the cost of electricity include:

  • From November 2021 to March 2022, for those businesses that are connected to the Medium Voltage supply, the special payment of using Public Utilities (YKO) is suspended. This reduction concerns a special charge included in the electricity tariffs.
  • From January to March 2022, non-domestic consumers (professional-business enterprises), who are contracted to variable electricity supply tariffs, are subsidized with €65 per MWh, without a consumption limit.
  • In April 2022, the subsidy is doubled to €130 per MWh. In addition, for micro, small and medium-sized enterprises with a power supply of up to 25kVA and for all bakeries regardless of the power of supply, an additional subsidy of €100 per MWh is provided for the total consumption. The total unit subsidy therefore amounts to €230 per MWh. This measure concerns 1,160,000 businesses’ supplies such as restaurants, shops, kiosks, hairdressers, offices, bakeries and is estimated at €35 million for April.

According to the government's estimates, the total amount of the businesses’ electricity subsidy measure for February 2022 is estimated at €133 million.

Updates

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

23 August 2022

On 23 August 2022, the Minister of Energy announced the extension of the subsidy on electricity bills for September 2022 for businesses.

For small and medium sized enterprises with a power supply of up to 35kVA, the subsidy has been set at €604 per MWh for the entire monthly consumption with the aim of absorbing up to 89% of the increase. This measure concerns 1,250,000 business services such as restaurants, shops, kiosks, convenience stores, hairdressers, offices, bakeries and it is estimated at €401 million for September.

For farmers, the subsidy amounts to €639 per MWh covering 90% of the electricity increase.

For all the other commercial and industrial supplies with a power consumption greater than 35kVA the subsidy amounts to €342 per MWh.

10 August 2022

The Greek government with a Joint Ministerial Decisions (KYA) No 82581/2775 (FEK Β 4248) on 10 August 2022 extended the electricity subsidy of companies for the July 2022.The provided subsidy is set €148/MWh.

25 July 2022

On 25 July 2022, the Minister of Energy announced the extension of the subsidy on electricity bills for August 2022 for businesses.

For small and medium sized enterprises with a power supply of up to 35kVA, the subsidy has been set at €300 per MWh for the entire monthly consumption with the aim of absorbing up to 80% of the increase.

For farmers, the subsidy amounts to €337 per MWh covering 82% of the electricity increase.

For industrial supplies with a power consumption greater than 35kVA the subsidy amounts to €250 per MWh covering 67% of the electricity increase.

01 July 2022

The Greek government with a Joint Ministerial Decisions (KYA) No 67071/2331 (FEK Β 3375) on 1st July 2022 extended the electricity subsidy of companies for the June 2022.The provided subsidy is set €100/MWh.

02 June 2022

The Greek government with a Joint Ministerial Decisions (KYA) No 55616/1961 (FEK Β 2759) on 2 June 2022 extended the electricity subsidy of companies for the May 2022.The provided subsidy is set €120/MWh.

Use of measure

According to governments estimates, for April 2022 the measure concerns 1,160,000 businesses’ supplies such as restaurants, shops, kiosks , hairdressers, offices, bakeries and its cost is estimated at €35 million.

Target groups

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

The Hellenic Confederation of Professional Craftsmen and Merchants (GSEVEE) in a Press Release on May 6, 2022 concerning the policy of interventions on energy prices, argues that the government's measures to address the increases in the energy supply relieve small and medium-sized enterprises and households but is falling short of the real needs.

Sources

Citation

Eurofound (2022), Electricity subsidy for companies, measure GR-2021-45/2410 (measures in Greece), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/GR-2021-45_2410.html

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