Background information

As a respond to the crisis, caused by the war in Ukraine and the large increases in energy prices, the Greek government announced on 5 Μay 2022 a new National Support Programme, aimed at assisting low income households for their electricity consumption.

In this context, an "emergency" financial support scheme in order to cover part of household electricity bills was announced. The measure was introduced by the Article 36 of the National Climate Law No. 4936 on 27 May 2022 (in the section of regulations to address the energy crisis). The financial support to households (named "Power pass") concerns the coverage of part of the increase in the cost of electricity consumption (60%). The assistance initially scheduled to cover the period from December 2021 until May 2022.

Afterwards, with a new law No. 4964 (article 81), the subsidy expanded to cover also June 2022.

Content of measure

The new Law Nο. 4936 of 2022, as specified by the Decision No. 3365 (Government Gazette B 2827 on 6 June 2022), provides for the extraordinary financial support "Power Pass" of households to cover part of the increase in electricity bills. According to the law:

• Beneficiaries of the financial support are natural persons with a net family income in 2020 of up to €45,000.
• The subsidy concerns the electricity bills of primary residence or student accommodation within Greece for the period from 1 December 2021 to 31 May 2022 and depending on the amount of the bills it can be up to the amount of €600.
• The subsidy corresponds to the 60% of the increase in the electricity bills after deducting the discounts granted by the energy supplier companies and the subsidy is given by the State.
• Applications are submitted electronically to the platform of the Single Digital Portal of the Public Administration .
• The subsidy is deposited in a bank account of the beneficiary's choice.
• The submission of applications started on 17 June 2022 and ended on 5 July 2022.

On 30 July 2022, the article 81 of Law No. 4964 extended the application of the measure for June 2022.

Use of measure

According to various Press publications, on 15 July, after the submission of applications and the processing of the data it was found that:

• Three million applications were submitted to the platform out of a total of 4 million potential beneficiaries for their main residence.
• The cost paid by the households themselves for the main and student residences amounts to €430 million, of which 60% of them are repaid by the government, i.e. €260 million.
• The number of applications submitted for the subsidy concerned 2,952,778 physical persons.
• The applications approved concerned 2,530,597 physical persons.

The amount after the extension of the subsidy for the month of June 2022 is expected to approach €300 million.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	People on low incomes

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 is no involvement of social partners.

Views and reactions

In general, the support package announced by the government to address energy price increases was positively accepted by the market organizations and their organisations. More specifically:

GSEVEE (national social partner, representing small and medium-sized enterprises) considered that the measures announced by the government to address the price increases in the energy market "relieve the small and medium-sized enterprises and households" but they "fall short as regards the real needs".

ESEE (national social partner, representating commerce) considered that the measures will absorb a large part of the shock created by the energy crisis, but there is, at the same time, a need for a comprehensive and long-term solution of support from the EU.

Similar views were expressed by the other employers' / professional organizations, such as the Economic Chamber of Greece, the Central Union of Chambers of Greece, the Professional Chamber of Athens, the Athens Chamber of Commerce and Industry, Thessaloniki Chamber of Commerce and Industry.

According to them, the interventions announced by the Government in May 2022 to address the energy crisis for the budgets of households and businesses are considered positive and important. However, they are pointed out that there should be no complacency regarding the wave of price increases and that there is an imperative need for a comprehensive European solution.

Sources

• 06 June 2021: JMD No 3365 on 6 June 2022 (www.ktpae.gr)
• 05 May 2022: K. Mitsotakis: The adjustment clause is suspended - Retroactive return of 60% of additional charges (Anastelletai I ritra anaprosarmogis – anadromiki epistrofi 60% prostheton epivarinseon (www.naftemporiki.gr)
• 06 May 2022: How the market saw the new energy package (Pos ide i agora ta nea metra) (m.naftemporiki.gr)
• 27 May 2022: Law 4936 of 27 May 2022 (www.elinyae.gr)
• 15 July 2022: Power Pass: Today the payment at 1.9 million beneficiaries - What applies to Jun (m.naftemporiki.gr)
• 30 July 2022: Law 4964 of 30 July 2022 (www.kodiko.gr)
• 06 August 2022: At €3.2 billion is the cost for the energy package (Sta 3,2 dis. Euro to kostos gia to energiako paketo (www.naftemporiki.gr)