Two-month subsidy plan for possible election impasse

The energy ministry, until now announcing and revising, on a monthly basis, electricity subsidies provided to consumers, is examining the possibility of announcing such support for two months, covering May and June, as consumer protection against any possible sharp energy price rises during the period following the country’s May 21 legislative election, should it fail to produce a new government.

If so, a caretaker government will be sworn in to serve for an interim period of one to one-and-a-half months.

At this point, the energy ministry wants to confirm the availability of funds needed to cover two months of electricity subsidies before it makes an official announcement for May and June.

An announcement on a double dose of electricity subsidies could be made by energy minister Kostas Skrekas tomorrow.

The subsidy level to be offered for May is expected to be below the April level, which was set at 15 euros per MWh (0.015 euros per KWh).

The country’s electricity suppliers announced slightly reduced nominal tariffs (before subsidies) for May on April 20. Suppliers are required to announce their nominal tariffs for each forthcoming month by the 20th of every preceding month.

Lower electricity tariffs mean the government can contribute less subsidies to maintain finalized electricity costs at a level it desires.