The Greek government has announced the imposition of an extraordinary tax on natural gas producers during August and September. The main purpose of this measure is to raise funds that will be used to subsidize consumers’ electricity bills.
The tax is intended for natural gas producers
Prime Minister Kyriakos Mitsotakis outlined the need for this government intervention as a response to the strain on Europe’s interconnected power grids. This “additional stress” on the electricity system has been caused by growing energy demand from neighboring countries, which in turn has pushed prices up in Greece.
Mitsotakis stressed that Greece is forced to adjust to temporary distortions in the European regional electricity market. To mitigate these effects, a one-time tax will be levied on natural gas energy producers, the revenues from which will be used to cushion the impact of increases in household electricity bills during the hottest months of the year.
Energy consumption in Greece reaches its highest levels during July and August, coinciding with the intensive use of air conditioning systems due to the high temperatures, which this summer have exceeded 40 degrees Celsius. This extraordinary tax is a direct measure to alleviate the financial pressure on Greek consumers.
According to data from Ember, an energy think tank, average daily wholesale prices across the European Union have increased since June compared to May. Greece has experienced one of the highest increases in daily energy prices during this period, indicating a continued rise towards the end of the year, as anticipated by Andriy Tarasenko, chief analyst at GMK Center.
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Source: Oil Price
Photo: Shutterstock
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