The energy ministry plans to seek state budget support for the public service compensation (YKO) special account’s deficit, now close to 600 million euros and widened by 300 million euros in a year.

This special account, normally subsidizing high-cost electricity production on non-interconnected islands through YKO surcharges included in all electricity bills, experienced a wider deficit last year as a considerable proportion of its inflow was channeled into the Energy Transition Fund to fund electricity subsidies offered by the government to all consumers as an energy-crisis measure.

The energy ministry hopes this will be the final time state budget support will be needed to keep the YKO special account balanced. The ministry expects major YKO special account savings to result from the prospective Crete-Athens grid interconnection, planned for commercial launch in 2025.

The Crete-Athens grid interconnection project is expected to lead to an YKO special account surplus of 150 million euros in 2026.