Greece to set cap on electricity prices to relieve consumers- PM

Record ID: 1671422

  • Title: Greece to set cap on electricity prices to relieve consumers- PM
  • Date: 5th May 2022
  • Summary: ATHENS, GREECE (MAY 5, 2022) (REUTERS) VARIOUS OF MARKET OWNER TELIS PAPANTONIOU IN HIS MARKET PAPANTONIOU'S ELECTRICITY BILL PAPANTONIOU SHOWING HIS HIGH ELECTRICITY BILL (SOUNDBITE) (Greek) MARKET OWNER TELIS PAPANTONIOU, 60, SAYING: "We close half the lights, or we open it later so we don't use electricity...it's not worth keeping anything running, and now with the heat (electricity ) consumption will triple." VARIOUS OF CHRISTOS PANTAZONAS CLOTHING SHOP, PANTAZONAS IN HIS SHOP (SOUNDBITE) (Greek) CLOTHING SHOP OWNER CHRISTOS PANTAZONAS, 68, SAYING: "We are trying to reduce costs, but the electricity cannot be reduced, what should I do, work in the shop without electricity? Should I hook up the generator?" VARIOUS OF CLOTHING SHOP
  • Embargoed: 19th May 2022 19:56
  • Keywords: Europe Greece Russia Ukraine conflict electricity energy gas inflation sanctions war
  • Location: ATHENS AND MEGALOPOLIS, GREECE
  • City: ATHENS AND MEGALOPOLIS, GREECE
  • Country: Greece
  • Topics: Conflicts/War/Peace,Europe
  • Reuters ID: LVA003606105052022RP1
  • Aspect Ratio: 16:9
  • Story Text: The Greek government will set a ceiling on wholesale electricity prices to help consumers and businesses cope with their soaring energy costs, Prime Minister Kyriakos Mitsotakis said on Thursday (May 5).
    Like many other countries, Greece has been in the grip of rising gas, electricity, fuel and food prices since last year, exacerbated after Russia's Feb. 24 invasion of Ukraine.
    "Europe has appeared at least until today to not have risen to the occasion, and unfortunately a solution is taking too long, and that is why Greece...will not wait, because I first of all, feel that the hardship of businesses and households cannot wait any longer." Mitsotakis said in a televised address.
    The government's support programme will be four-pronged and will refund up to 60% of all the surcharges electricity consumers have paid from December until May, Mitsotakis said.
    This refund will be limited to 600 euros and will cover all consumers with annual incomes of up to 45,000 euros for electricity consumed in their primary homes.
    Electricity producers will be asked to pay a "solidarity dividend" to society, meaning their windfall income will be taxed at 90%.
    The conservative government has come under increasing pressure from the political opposition to relieve the pain on consumers, especially the most vulnerable.
    With gas having a large share in the country's power generation mix, Athens has been subsidising power and gas bills and has also offered a one-off grant to vulnerable groups at a total cost of 4 billion euros ($4.22 billion) since September.
    Power costs have showed no signs of abating with consumers blaming a surcharge, applied by power suppliers and activated once the average monthly wholesale power price exceeds a specific limit, for ballooning power bills in recent months.
    A Greek consumers union filed a class action lawsuit against a power supplier, demanding that it scraps the surcharge and returns the additional costs to its clients.
    Inflation in Greece hit its highest level in 27 years in March, at 8.9%, while natural gas prices soared 68.3% on an annual basis and electricity prices increased 79.3%.
    Gasoline prices have jumped above 2 euros a litre for unleaded fuel, while food prices at supermarkets have increased as much as 40 percent.
    "We close half the lights, or we open it later so we don't use electricity...it's not worth keeping anything running, and now with the heat (electricity ) consumption will triple," said grocery market owner Telis Papantoniou.
    "We are trying to reduce costs, but the electricity cannot be reduced, what should I do, work in the shop without electricity? Should I hook up the generator?" said shop owner Christos Pantazonas.
    In April the government announced it was raising the minimum wage for a second time this year to 713 euros, to tackle rising inflation.
    (Production: Vassilis Triandafyllou, Deborah Kyvrikosaios)
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