The government is making efforts to offer low-income households greater protection against exorbitant price rises in the electricity market, which are being driven by an unfavorable combination of factors, internationally.

The energy ministry and RAE, the Regulatory Authority for Energy, have forwarded a proposal to the Prime Minister’s office for an increased discount to vulnerable households through the Social Residential Tariff (KOT) subsidy program.

Through KOT subsidies, eligible households currently receive electricity tariff discounts of between 45 and 60 percent, depending on their income levels, property assets and electricity consumption levels.

According to energypress sources, the proposal forwarded by the energy ministry and RAE calls for a further increase in these KOT-related discount rates, which would offset any electricity price rises.

The KOT program is funded by public service compensation (YKO) surcharges included in electricity bills. However, the latest YKO amount will be lower as a result of a big dip in oil prices last year.

The energy ministry is seen covering this gap by using some of the funds raised through CO2 emission right auctions.

CO2 emission right auction revenues for this year are expected to reach 90 million euros. A 60 percent portion is, by law, channeled into the RES special account, while the distribution of the remaining 40 percent is determined through ministerial decisions reached each year.