The Greek Ministry of Environment and Energy has decided not to introduce an emergency tax on electricity producers, choosing instead to rely fully on the Energy Transition Fund (ETF) to finance subsidies for electricity bills. Originally intended as a temporary financial mechanism, the ETF will now bear the entire responsibility for supporting energy costs.
Last November, under previous leadership, the Ministry had left open the possibility of imposing a windfall tax on electricity producers as a means to secure additional funds for subsidizing electricity bills for households and small businesses during the winter months. Early discussions with the European Commission indicated that such a tax would comply with EU rules, with Brussels showing no objection. This was especially the case when compared to other measures under consideration, such as reintroducing wholesale electricity price caps. Among the evaluated options, taxing the profits of electricity producers was favored. Meanwhile, the idea of taxing natural gas used for electricity generation was quickly abandoned, as Greek officials argued it would increase wholesale electricity prices and counteract the subsidy’s goals.
From December 2024 to March 2025, subsidies for households on variable-rate electricity plans amounted to 83.3 million euros. During the same period, support for small and medium-sized enterprises—from 1 December 2024 to 28 February 2025—is expected to total approximately 50 million euros.
