The Greek government has unveiled a package of measures aimed at cutting electricity costs by 30% over the next three years, seeking a structural reduction in energy bills rather than relying on temporary subsidies.
In a plan unveiled on Tuesday, Environment and Energy Minister Stavros Papastavrou and Deputy Minister Nikos Tsafos cited a figure of almost five billion euros for energy-efficiency measures, greater flexibility in power consumption, expanded renewable energy production and storage for self-consumption, as well as building upgrades.
The plan comes as electricity costs have again come under pressure recently, as wholesale power prices in Greece have risen for four consecutive months, with the average price in August reaching more than 130 euros per megawatt-hour, while household green tariffs also increased. The rise has renewed concerns about the cost of electricity heading into the autumn and winter.
The government’s target is to bring the average retail electricity price down from around 238euros per megawatt-hour to about 166 euros over the next three years, returning it broadly to levels seen before the energy crisis.
A central measure will be a halving of the first household electricity charge under the Public Utilities Compensation mechanism from the beginning of next year, benefiting around six million household connections. The reduction follows a similar cut already introduced for industry and has been made possible by the completion of electricity interconnections linking the islands with the mainland.
The government will also accelerate major grid investments, including interconnections for the Dodecanese and north Aegean islands and the completion of remaining projects linking Crete with the mainland. Greater interconnection is intended to reduce reliance on more expensive conventional generation on the islands and lower system costs.
A new battery-subsidy scheme will support storage linked to renewable energy projects, self-consumption and standalone systems for businesses and local authorities. The government also plans new energy-efficiency programs covering tens of thousands of homes, with support for insulation and other upgrades, while separate schemes will finance heat pumps and solar water heaters.
Small businesses will receive assistance for energy upgrades, while public buildings, universities and schools will undergo energy-efficiency improvements. Railway infrastructure projects are also included in the wider investment package.
Tackling power theft
The government is simultaneously targeting electricity theft and overdue bills, which it says impose a substantial cost on consumers who pay regularly. The strategy calls for the installation of smart meters across the electricity network, allowing consumption to be monitored more accurately and helping reduce losses.
