By Haris Fludopoulos
At a time when gas and electricity prices are on fire, inflated costs are translating into increases in electricity bills for end consumers. And this implies an additional need for significant increases in the September electricity tariff subsidies as well, i.e. above the 1.1 billion euros that will be allocated for August.
According to the scenarios that the government is working on, it is possible that until the end of the year funds of the order of 300 million euros/month or even more will be needed in order for the state budget to contribute to the subsidies of electricity bills and to cover the increases.
But what is the picture so far on the price front?
In the first ten days of August, the price of natural gas was consistently above 200 euros/MWh, while on some days it even exceeded 216 euros/MWh. As a result, electricity prices jumped above 350 euros/MWh when in July the average price was 335 euros/MWh.
If the trend in electricity and gas prices continues then the subsidy cost for September may need to move higher than the 1.136 billion it was in August and reach 1.3 to 1.4 billion euros, as the government insists on the target for a post-subsidy final consumer price of 15 to 18 cents/KWh.
Where will the money for the subsidies come from? From the total amount of 1.3 – 1.4 billion euros, the TEM Energy Transition Fund is estimated to reach 1 billion euros, together with the excess revenues of the energy companies. This means that the budget should cover an amount of 300-400 million euros.
If this scenario is verified, then by the end of the year the budget should contribute cumulatively for electricity subsidies, an amount of 1.2 to 1.6 billion euros.
Source: Capital
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