Electricity bill subsidies are expected to be extended into 2022 but will not be offered universally for all household income categories, as has been the case this year, as a result of the fiscal deficit, seen closing 2021 at approximately 7 percent of GDP, despite GDP growth that is projected to exceed 8 percent.
The resulting lack of leeway has been pointed out by officials at Greece’s finance ministry as well as the European Commission, which has called for targeted energy-crisis support for lower-income households.
The government is preparing for a new round of negotiations with Brussels for household energy support measures in 2022.
In recent months, Athens has offered electricity-bill subsidies to all household consumer categories, regardless of income level, worth 39 euros per month for the first 300 KWh of consumption.
Given the projected fiscal deficit, the government has little financial leeway to keep offering a universal energy support package in 2022.
The administration needs to find new ways of supporting households unable to cope with exorbitant energy costs if price levels remain high next month.