Subsidy compensation payment for suppliers, still pressured

Electricity suppliers have just received a second installment compensating them for subsidies offered to low-voltage consumers in November, after receiving a first installment on November 19, which covered electricity-bill subsidies for September and October.

All low-voltage tariffs with adjustment clauses, to curb wholesale price increases, have been offered a subsidy increase to 13 cents per KWh for consumption up to 300 KWh, which works out to 39 euros per month.

The latest compensation payment made to suppliers covers November, meaning they will need to cover the cost of December’s subsidies with their own capital, until the month’s compensation payment is delivered. It is not expected until June.

Sector officials estimate December’s compensation payment delay will require them to temporarily cover between 40 and 45 percent of the subsidy’s overall cost from September to December.