The Greek government has increased the budget of the government-funded mechanism for helping households tackle with soaring energy prices from €150m to €500m. The country plans to offer a €18/month subsidy for the first 300 kWh consumed by Greek households retroactively from 1 October 2021 until the end of December 2021. Under a previous plan, unveiled in September 2021, the subsidy was set at €9/month. Vulnerable households will receive a €24/month subsidy, and power and gas suppliers will offer additional discounts to consumers. The subsidies are forecast to cost €326m. In addition, Greece will spend €168m on an annual one-off payment to vulnerable households to help them buy heating oil for the winter. The heating oil subsidy was already increased by 20% in September 2021
The package will be funded by the Special Support Fund for the Energy Transition, to which the sum will be taken from the increased revenue for Greece in 2021 from the Carbon Emissions Trading Rights System. Greece is facing rising electricity prices, due to higher gas prices (gas accounts for around 30% of the power mix) and rising CO2 emission rights prices.