Surcharge on gas used for power generation imminent

The energy ministry has, according to sources, prepared a provision for the introduction of a special surcharge of 10 euros per thermal MWh on natural gas used for electricity generation.

This new surcharge could be ratified within October for implementation immediately afterwards, the sources added. It was announced in late September by energy minister Kostas Skrekas, along with the energy subsidy package for October, as a new source for the Energy Transition Fund.

According to the minister, funds to be raised through the new surcharge on natural gas used for electricity generation will be used to offer energy-cost support to low-income households and small and medium-sized enterprises, as well as for biomethane and green hydrogen investments.

The new surcharge is not necessarily being introduced to replace a price cap on gas-fueled power stations, meaning it will be implemented regardless of decisions to be taken on whether to keep or drop a cap on payments for gas-fueled power stations.