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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-2022-1/2380 Updated – measures in Greece

Subsidised natural gas for households and businesses

Epidotisi fisikou aeriou se nikokiria kai epihirisis apo tin kivernisi (Επιδότηση φυσικού αερίου σε νοικοκυριά και επιχειρήσεις από την κυβέρνηση)

Country Greece , applies nationwide
Time period Temporary, 01 January 2022 – 31 August 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 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 and the production costs of the businesses.

In this context, the Greek government has taken measures to subsidise the natural gas consumption of households and businesses. In 2021, the natural gas subsidy followed the procedures regarding the payment of the heating allowance that was in force in previous years. For 2022, a series of Joint Ministerial Decisions (KYA) of the ministers of finance and energy provided for additional funding:

  • KYA No 109471/1763 on 18 November 2021, for the period September to December 2021.
  • KYA No 12468/434 on 9 February 2022 and No 23632/859 on 10 March 2022, for the period from January to March 2022.

The measure was extended for April and May 2022.

Content of measure

The natural gas subsidy for residential consumers and businesses in accordance with decisions No 2462/333 on 11 February 2022, No 23960/762 on 11 March 2022 and No 38336/1139 on 15 April 2022 provide for:

Residential consumers:

  • Beneficiaries of the subsidy are all consumers of natural gas .
  • The subsidy is provided for the total consumption of natural gas and for the months of January to March 2022 is set at €20 per MWh. For April 2022 this is €40 per MWh.

Non-domestic consumers (entrepreneurs):

  • The subsidy provided for January 2022 is set at €30 per MWh for the total consumption of natural gas. For February and March 2022 the subsidy is set at €20 per MWh and for April it is €40 per MWh.

Updates

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

10 August 2022

The Greek government with a Joint Ministerial Decisions (KYA) No 82196/2205 on 10 Augoust 2022 extended the subsidy on natural gas for residential consumers and businesses for the July and August 2022. The provided subsidy is set at €30 per megawatt/hour (MWh).

03 June 2022

The Greek government with a Joint Ministerial Decisions (KYA) No 55380/1559 on 3 June 2022 extended the subsidy on natural gas for residential consumers and businesses for the May 2022. The provided subsidy is set at €20 per megawatt/hour (MWh).

Use of measure

According to the Minister of Environment and Energy, the state subsidy of natural gas for the month of February concerns 540,000 residential consumers and the benefit for households amounts to €40 per thermal MWh.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all 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 is was no involvement of social partners.

Views and reactions

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

Sources

Citation

Eurofound (2022), Subsidised natural gas for households and businesses , measure GR-2022-1/2380 (measures in Greece), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/GR-2022-1_2380.html

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