A new electricity subsidies model being prepared by the Greek energy ministry for launch in January 2024 will offer consumers subsidies on a selective basis, taking into account criteria such as income, electricity usage levels, property ownership and, possibly, geographical location of consumers, as opposed to the current system, offering universal support.
The European Commission is pressuring for an end to universal electricity subsidies and wants a new model that would ensure energy-cost support is offered to households in real need.
The government had mildly modified its electricity subsidies model earlier this year, in February, restricting subsidies to monthly consumption of up to 500 KWh, after subsidizing all consumption in the preceding 18 months.
The new, overhauled subsidies model being shaped by the energy ministry for Greece’s electricity market is expected to share similar traits to the income-based formula offering heating fuel subsidies, which also includes geographical location and number of persons per household as factors.
If geographical location of consumers is incorporated into the new subsidy model for electricity subsidies, different subsidy rates will be applied for different regions, Energypress reports.
