Greece taxes power company profits and caps wholesale prices

The Greek Prime Minister, Kyriakos Mitsotakishas announced new measures to alleviate the rise in the electricity bill, which includes taxing the large profits of electricity companies and establishing an indirect ceiling on wholesale prices.

In a televised message, Mitsotakis regretted not having reached an agreement with the European Union to give a common answer. “In contrast to the initiatives you have taken for the Recovery Fundhere Europe is not up to the task, at least to date,” declared the Greek prime minister.

In Greece the price of the electricity and gas bill has multiplied by four. For this reason, the Greek Government has decided to implement a series of additional measures, among which is a 60% return of all additional charges to each owner or renter of a first home, retroactively, from December to May.

The limit of this extraordinary compensation will be 600 euros and will affect all citizens with an annual income of up to 45,000 euros. Beginning in May and June, any increase in consumption greater than 300 kWh will be subsidized by 50%.

Electric companies will also have to pay a “share of solidarity with society”

Electric companies will also have to pay a “share of solidarity with society“, as reported by Mitsotakis. Therefore, all additional income that is temporary will be taxed at a special rate of 90%. In addition, Greece will launch a system from July, which will last a maximum of one year, with which it will disconnect international gas increases from the country’s electricity bills.

“With this double state intervention, both in the wholesale and retail energy markets, we are marking an indirect ceiling. And, at the same time, we are stabilizing the prices that reach the consumer”, indicated the leader of new democracy.

With this new aid package, it is estimated that the Greek State will invest up to 5,000 million euros to alleviate the effects of the energy crisis. Athens He had been pressing for more than two months Brussels to adopt a Community response to the energy crisis. In a session of the Greek Parliament, Mitsotakis already indicated that they would act on their own if the European Union did not adopt measures.

This decision has come at a time when New Democracy, the ruling party, has lost support due to the rise in energy and basic food prices, in a country where gas prices are higher than average. but the median income is one of the lowest in the bloc.


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