Saturday, June 25 2022 Sign In   |    Register

News Quick Search



Front Page
Power News
Today's News
Yesterday's News
Week of Jun 20
Week of Jun 13
Week of Jun 06
Week of May 30
Week of May 23
By Topic
By News Partner
Gas News
News Customization


Pro Plus(+)

Add on products to your professional subscription.
  • Energy Archive News

    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    Greece: Energy companies must give up 90 percent of their extra profits to cover electricity costs for citizens

    May 20, 2022 - Pressenza


      Energy and power companies are among the biggest beneficiaries of the current crisis. Bills are skyrocketing for the population, while energy suppliers are making billions in profits. In Greece, energy companies must now pay 90 percent of their excessive crisis profits to the state. The conservative government wants to use this to finance a cost-of-living adjustment and to cover 60 percent of the additional electricity costs for citizens.

      Across Europe, electricity and gas prices are skyrocketing - this is a massive burden for large sections of the population. In Greece, too, energy bills have risen sharply in recent months. Since the financial and economic crisis, many people are finding it difficult to make ends meet, with one in three living on the edge of poverty. In view of the inflation, the conservative government must relieve the burden on the population. Citizens are now to be reimbursed up to 600 euros for increased electricity bills. This means that the state will cover 60 percent of the increased electricity costs. People with an annual income of up to 45,000 euros are eligible. In addition, energy-saving air conditioners, refrigerators and other appliances are to be subsidized.

      90 percent of the crisis profits of energy companies in Greece

      The 2.5-billion-euro program is to be financed by a special tax on the extra profits of energy companies. Profits above the average values of the previous year will be skimmed off with a 90 percent tax. In a televised address on the relief package, Prime Minister Kyriakos Mitsotakis said:


      In addition, he said, the government was working on decoupling energy prices from people's electricity bills. The prime minister had already called for this measure at EU level at the beginning of April. Spain and Portugal are also in favour of decoupling; they have now at least pushed through a price cap on electricity prices in the EU. Yet the conservative ruling party Nea Dimokratia has a neoliberal orientation, having cut taxes on corporate profits and real estate in the past. Moreover, within the party, Prime Minister Mitsotakis tends to belong to the liberal economic wing.

      Electricity suppliers cut off power to 26,000 households

      In late April, Greek electricity providers began cutting off power to more than 26,000 households because they could no longer pay the bills. This has increased pressure on the government. As early as August 2021, the conservative government provided subsidies to poorer households for their electricity bills, which were increased again in the fall. The heating subsidy is now available to 1 million households - 300,000 more than last year. In addition, there is a subsidy of 42 euros per month for everyone's electricity bill. For people living in social housing, this subsidy is even higher, amounting to 180 euros per megawatt hour. But because these measures did not provide sufficient relief for the population, the government is now adopting this relief package.

      Italy also taxes excess profits of energy companies

      Italy wants to skim off the excessive profits of energy companies with a special tax in order to relieve the population. The country also has a conservative as the head of government: former ECB chief Mario Draghi. Companies are to pay 25 percent of their additional profits. Central to the calculation are the additional profits of the last six months compared to the same period last year. Among others, 28 million Italians are to benefit from this. They are to receive 200 euros to compensate for their increased energy costs.


    Other Articles - International


       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.