Fall in gas prices reducing subsidies cost

The fall of natural gas prices and the nominal electricity rates issued by providers for February, which are 60% less expensive than those of January and quite similar to pre-crisis levels, is leading to a major easing of pressure on state coffers.

The difference between the target price of 15-17 cents/kWh for household relief and that of the Public Power Corporation (PPC), which serves as the reference for the calculation of subsidies, has significantly decreased, and subsidies are adjusted accordingly at very low levels.

On Monday, Energy Minister Kostas Skrekas is expected to announce a 4 cents/kilowatt-hour subsidy for the first 500 kilowatt-hours and zero subsidies for industry, as the nominal price of tariffs is set below the January subsidy level of 23 euros. 

The second and third scale of household consumption, i.e. 500-1,000 kilowatt-hours and above 1...