September electricity subsidies to be doubled to nearly €2bn

The government intends to absorb the greatest part of electricity price increases for September through subsidies expected to reach nearly two billion euros for the month, a support package seen subduing retail tariffs at 0.15 euro per KWh, the level of retail electricity prices in August.

This latest monthly subsidy amount is nearly double the 1.136 billion euros the government needed to commit for August to fight escalating energy costs.

Electricity retailers announced higher tariffs for September a couple of days ago, but the latest subsidies are expected to keep prices virtually unchanged for household consumers. The cost of electricity for businesses, however, is seen doubling next month.

Electricity subsidies for September will need to increase sharply to a level of 0.60 euro per KWh, up from 0.337 euro per KWh in August, a 70 percent increase.

Approximately 900 million euros of the government’s two billion-euro subsidy package for September will be covered through the state budget, while the other 1.1 billion euros will hail from the Energy Transition Fund, which gathers CO2 emission right auction revenues, RES special account surpluses and windfall profit taxes imposed on electricity producers.