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
|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|
Responses to inflation
– Support for energy bills
|Author||Penny Georgiadou (INE GSEE)|
|Measure added||24 May 2022 (updated 26 September 2022)|
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:
The measures taken by government to subsidize businesses to reduce the cost of electricity include:
According to the government's estimates, the total amount of the businesses’ electricity subsidy measure for February 2022 is estimated at €133 million.
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.
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.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
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:
There was no involvement of social partners.
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.
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.