The Energy Ministry of Greece plans to scrap a surcharge on electricity bills imposed by power companies. The move comes as part of government efforts to alleviate the impact of soaring energy costs on consumers
A power plant in Megalopoli, Greece. Credit: Ulrichstill, CC BY-SA 2.0, Wikimedia Commons
The Energy Ministry of Greece plans to scrap a surcharge on electricity bills imposed by power companies. The move comes as part of government efforts to alleviate the impact of soaring energy costs on consumers.
The surcharge, which is linked to wholesale energy prices, often accounts for more than half of electricity bills. Greece has not been immune to electricity price inflation, which has skyrocketed in recent months across the European continent.
Under legislation expected to be voted on later this month, the surcharge will be scrapped from August until July 2023. The Greek conservative government, whose four-year term ends next year, has spent about €7 billion on a raft of measures to help consumers pay electricity and fuel costs. The government has also announced a ceiling on wholesale electricity prices from this summer. The scheme works by introducing a cap on payments to power producers which is meant to reflect their real production costs.
The Greek Energy Ministry said it would be able to absorb between 82% and 100% of the additional burden of higher power bills on half a million low-income families and other consumers, including small and medium-sized businesses and farmers.