Europe

Why the electricity bill soared

Greeks still pay much higher than the European Union average, despite subsidies covering up to 85% of hiking. This proves that the cause of the invoice swelling is not only domestic, but also imports.

Eurostat data on energy inflation in May helps explain the reality that Greek interest rates are almost twice the average in the euro area.

According to preliminary figures, Greece’s energy inflation rate reached 60.9% on an annual basis last month, while Europe’s average was 39.2%, but Greece was among the 13 countries that submitted data in May. It recorded the third largest increase after the Netherlands and Belgium. Russia is highly dependent on gas. France, where nuclear power plants are located, has increased by 28.9%, well below the EU average.

According to the most reliable statistics in April, Greek billing increased by 57.6% year-on-year, while the European average was 37.5%. The index has risen by 33.3% in Spain, 30% in Bulgaria and 27.1% in Portugal, so the comparison with other countries in southern Europe is staggering.

The data reflect the general problems of the energy crisis, the high costs of energy products that lead to inflation in the euro area, and the differences in the domestic electricity market structure between the various member countries. The same is true for liquid fuels. Greece is steadily one of the top three countries with the highest markets. The disparity in numbers also explains the difference in the degree of urgency among European leaders on European support measures.

In the case of Greece, the structure of the electricity market is partly due to the rises faced by consumers, but relatively high taxes are the main cause of soaring gasoline and diesel. Greece has the third highest sales tax on gasoline (0.70 euros) per liter), followed by the Netherlands and Italy, 15th in diesel, at 0.41 euros / liter.

In electricity prices, a 40% share of gas in electricity production contributes to a disproportionately higher bill increase than the European average, but lignite is not allowed to replace gas.

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https://www.ekathimerini.com/economy/1185908/why-power-bills-have-soared/ Why the electricity bill soared

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