Authorities estimate a new Permanent Hedging Mechanism will accumulate an annual sum of between 350 and 500 million euros, for consumer subsidy support, through public service compensation (YKO) surcharges included in electricity bills.
According to energy minister Kostas Skrekas, the new mechanism will operate as a prospective reserve Energy Transition Fund and will be used should energy prices rise further to help fund consumer support initiatives.
“With this risk hedging tool, we are shielding and protecting the people of Greece from any future painful energy crises,” the minister noted.
Under the plan, public service compensation surcharges for three existing household consumption categories will be set at one level. As a result, public service compensation charges for households consuming up to 1,600 KWh per four-month period will be increased by 1.01 cent, from the existing level of 0.69 cents to 1.7 cents.
This means that public service compensation charges for households consuming greater amounts will actually be reduced as current YKO rates for consumption levels of between 1,601 and 2000 KWh per four-month period are 5 cents per KWh and 8.5 cents per KWh for consumption levels of over 2,000 KWh per four-month period.
Households consuming up to 1,600 KWh per four-month period should expect to pay additional public service compensation charges of 4 euros per month.