The new subsidy policy that is being finalized these days, to be announced by the end of the month, provides for a reduction in the heating oil subsidy and, accordingly, a significant increase in the financial support of those families who will switch to electricity.
The “turn” is largely ordered by the European Commission, which calls on member states to stop subsidizing the use of fossil fuels.
The Greek government chooses to proceed – starting this year – with a gradual adjustment by continuing annual reductions in the heating oil subsidy, with the final result being zero.
What each beneficiary will receive this year – provided they meet the income criteria, which will remain the same – will depend not only on their place of residence, but also on their marital status and the family’s source of energy. The higher amount will be attributed to those who use “green” electricity. Heating with electricity was subsidized last year for the first time.
This year, there will be three changes:
- Firstly, the subsidy will be given in cash, by depositing the amount in the bank account and not in the form of a discount on the electricity bill.
- Secondly, the subsidy will be valid for the entire duration of the winter season and not just for the fourth part as was the case last year.
- Thirdly, the amount per family will be higher than last year. Last year, the allowance for those who used fossil fuels or wood and pellets took about 215 million euros of budgetary space, and an additional 40 million euros was needed for the electricity allowance.
For this year, at least 280 to 300 million euros would be needed, if only the electricity subsidy period were extended to cover the entire season. There is not that much available, so to keep the cost at 250 million euros, the subsidy per family on fossil fuels will be reduced.
The scale of subsidies
The reduction will be greater in heating oil, slightly less in natural gas, even less in wood and pellets. In essence, that is, a subsidy scale is created depending on the fuel.
It is estimated that the person who will use electricity will collect an allowance of at least 25% higher than the person who will use heating oil, even though he lives in the same neighbourhood. Among the financial staff, they consider that a reduction in the heating oil subsidy will not burden families, because the initial price of heating oil this year started from 1.2 euros per liter at the national average level, i.e. at least 20 cents lower than last year’s price. corresponding price.
By strengthening the electricity subsidy, but also by subsidizing households to install heat pumps, the government considers that it will take an important step towards the electrification of households this year.
The reality is that the situation is not helping as the price per kilowatt hour is still over 23 cents at the moment and natural gas at 7.5 cents. The ratio between the price of heating oil in kilowatt hours is about 11-12 minutes.
The coefficients are based on… EMY
In addition to the differentiation of the heat allowance according to the energy source, the payment schedule also varies. 60% of the allowance will be paid “in advance” as an advance, and bank accounts will be credited in December. Payment will be made at the end of April.
However, the coefficients to calculate the allowance per region will be adjusted in the spring based on data from the National Meteorological Service, so that the final amount of the allowance depends on the weather conditions prevailing in each region of the country during that period. season of the year.