In a recent radio interview, Environment and Energy Minister Theodoros Skylakakis suggested that the government may need to continue subsidizing electricity bills in September due to rising natural gas prices. The ministry is awaiting the announcement of September prices by electricity providers, but Skylakakis anticipates the need for continued subsidies.
August saw a subsidy of 1.6 cents per kilowatt-hour, keeping end-user prices below €0.15/kWh. The subsidy is funded by a windfall tax on refinery profits. Skylakakis hopes for a price de-escalation in the fall with the addition of renewable energy sources.
Wholesale electricity prices have been increasing since August 25, reaching €756 per MWh at one point. Natural gas price hikes are attributed to reduced supply, with concerns of Russian gas cuts. Despite these challenges, Russian gas flows to Europe remain consistent for now.
Overall, the government aims to stabilize electricity prices for consumers while navigating fluctuating energy markets and geopolitical pressures.