Europe

Greek government is considering new support plans amid growing anger over energy prices

Warned by public anger at rising energy prices and conservative government living costs, it promises to come up with a new state support plan for the benefit of families and businesses. The plan is scheduled to take effect in June.

The national plan is horizontal and will shape electricity prices to normal levels of the previous year, with a retroactive impact in May.

Subsidies will rise to € 72 per month, but additional one-off cash assistance Reportedly Considering vulnerable households.

Talk to CNN GreeceGovernment spokesman Jannis Oikonomou said on Wednesday that government intervention would also have a “dramatic character”, capping KWHour’s price and reducing it from the current 22 cents to 16 cents.

Funds reportedly come from national budgets and energy conversion funds, as well as taxation of the super profits of domestic energy companies.

In interviews with other media, sources at the Prime Minister’s Office said energy regulators would complete control of energy companies’ super profits and submit their conclusions to the government in May.

Prime Minister Kiriakos Mitsutakushi announced in April that the tax on super-profit is 90%, which will be used as a subsidy for vulnerable citizens.

“If these aids are implemented, electricity prices will not increase four to five times again,” government spokesman Oikonomou admitted that electricity prices are very high. ..

Intervention options

The government is considering various options to prevent the “electric shock” of consumption above 300kWh.

In the field of wholesale prices, we plan to introduce a price cap.

The options are: A price limit that applies horizontally and / or a price limit that introduces different prices depending on the power generation model.

There are also intervention scenarios that combine retail price subsidies with price caps, where retail electricity subsidies increase significantly.

At the same time, it seems unlikely that they will intervene in VAT rates that burden basic food products.

Adjustment clause

The government’s national plan does not seem to include measures against adjustment clauses that have soared electricity prices, deepened homes and businesses, and despaired. The government will probably wait for the court’s decision, as some organizations, consumer groups, and individual citizens have legally challenged the court’s decision.

However, the cynical approach of some ministers and government lawmakers is ………… ..

Wednesday, MP Babis Papadimitriou He argued that it was the private power company that put pressure on the state-owned energy regulators on the Contrachannel, and that the public company PPC was also implementing a coordinating clause.

Two days ago, Minister of Development Adonis Georgiadis said companies that produce electricity primarily from natural gas are protected from bankruptcy by adjustment clauses. “

PS For the time being, it is the citizens and SMEs that go bankrupt through this clause. This is because the Greek government overturns free market laws, including business risks such as bankruptcy, and allows private companies to be protected at the expense of their citizens. Country.

It’s no wonder pollThe gap between the ruling conservative neo-democracy and the main opposition left-wing Syriza coalition is narrowing with each passing month.

May vote: ND 30.6% SYRIZA 22.5%
March Voting: ND 31.1% SYRIZA 22.2%



https://www.keeptalkinggreece.com/2022/05/04/greece-govt-national-support-plan-energy-prices-anger/ Greek government is considering new support plans amid growing anger over energy prices

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