Electricity subsidies for low-voltage, household consumption in February will be set at between 5 and 6 cents per KWh, offered by the government to ensure retail power prices are contained at a level of between 14 and 16 cents per KWh.
Energy minister Kostas Skrekas is expected to announce February’s subsidy level during the week, possibly tomorrow.
This subsidy handout, far smaller compared to the previous month, and the lowest since the start of the government’s new subsidy strategy – launched last August with levels revised monthly based on nominal retail tariffs announced by suppliers for each forthcoming month by the 20th of each preceding month – has been made possible by lower wholesale electricity prices.
This price dip comes as great relief for the Energy Transition Fund, financially supporting the electricity subsidies offered to consumers, and the state budget, chipping in whenever required.
Power utility PPC, the dominant retail player whose monthly nominal tariffs subsequently shape electricity subsidies set by the state, has just announced a nominal tariff rate of 19.9 cents per KWh for monthly household electricity consumption of up to 500 KWh in February, 60 percent below the utility’s nominal retail price for January.
As a result, subsidies of between 5 and 6 cents per KWh will suffice to keep retail tariffs at 14 to 16 cents per KWh, the government’s target. Subsidies of 34 cents per KWh were needed in January to contain tariffs at the government’s desired level.
Money to be drawn from the ETF money for February’s subsidy effort should not exceed 60 to 70 million euros, well below the sum of 800 million euros required for January.