The energy ministry has decided to terminate, as of January 1, a special levy imposed on natural gas used for electricity production, energypress sources have informed.

The special levy has been applied by the energy ministry as a tool to limit domestic gas consumption and, as a result, help subdue gas prices. Up until recently, the ministry was considering to extend the levy for a brief period into 2024.

The energy committee at SEV, the Hellenic Association of Industrialists, had pushed for this special levy to be terminated during a recent meeting with the energy ministry’s leadership in late October.

At the time, the ministry officials refused to offer any specific withdrawal date for the levy, noting the matter would be examined with the course of international gas prices in mind. The ministry officials indicated the levy would be maintained if international gas prices remained at levels of the time, or increased.

However, international gas prices have since fallen. Last week, the TTF index fell to 38 euros per MWh, a level not recorded since early 2022, prior to Russia’s invasion of Ukraine and the attack’s impact on energy markets.

This price de-escalation in international markets should eliminate any risk of a demand-driven natural gas price increase in Greece, officials believe.

The special levy’s formula was revised in May to 5 percent of the TTF, replacing a previous flat rate of 10 euros per MWh that had been introduced in November, 2022.