Consumers in Greece to Receive 60 Percent Rebate On Electricity Bills

Consumers in Greece will be getting a rebate of 60 percent on the extra charges they paid for their electricity from December to May, as part of a packet of relief measures to tackle soaring energy prices, PM Kyriakos Mitsotakis announced on Thursday.

In a televised address, Mitsotakis said the refunds would be capped at €600 and would apply to households earning up to €45,000 a year. The refund will be paid directly to the bank accounts of electricity customers.

“The Russian invasion of Ukraine and the ongoing war are affecting the entire world, Europe and our own country. It is being carried out not only with missiles and bombs but also using energy as a weapon,” Mitsotakis said before detailing the relief measures.

For May and June, households will receive a 50 percent rebate for any increase in consumption of over 300 kWh, he said.

Greece to tax extra profits of power companies by 90 percent

The extra profits of power companies made during the energy crisis will be taxed at 90 percent, the prime minister also said.

“Regardless of European decisions, the Greek government, on its own initiative, will launch a system in July that will decouple international gas increases from the country’s electricity bills. This scheme will operate for up to one year,” he said.

Describing the measures as a “double state intervention” in the wholesale and the retail energy market, Mitsotakis said the government was setting an indirect cap on energy prices.

A program to encourage the public to replace old, energy-intensive air conditioners and refrigerators with energy-efficient models will also be launched as will a scheme for businesses to install solar panels on the roofs of their buildings.

Electricity rates in Greece are lower than the EU average in April

Greece is ranked 20th out of 33 European countries in terms of electricity rates, according to data from the monthly Household Energy Price Index (HEPI) survey on retail electricity prices in European countries.

The survey is being conducted by the energy regulators of Austria and Hungary and the company Vaasa ETT.

Despite the large increases that have occurred recently due to the international crisis, the average consumer price for electricity in Greece (Athens) was at 21.04 cents per kilowatt-hour in April compared to the 27.48 average in the 27 EU member-states.

The report shows that the price in Greece decreased by 11 percent last month due to the higher subsidy from the state.