Greece earmarks €1.1bn to combat October energy costs

The Greek government is planning to absorb up to 90 per cent of the inflation in the electricity and gas bills of its citizens in October.

The aid could reach up to 436 euros (432 U.S. dollars) per megawatt hour and cover about 90 per cent of Greek households, Energy Minister Kostas Skrekas said on Wednesday.

Citizens are also being asked to save energy.

Those who consume 15 per cent less this October than in the previous year will receive 50 euros more per megawatt hour consumed.

Up to 1.1 billion euros has been earmarked for the new aid package, with only 100 million euros coming from the state budget, Skrekas said.

The rest will be financed by windfall taxes on energy companies.

Greece introduced the taxes in May, until further notice, energy companies have to pay 90 per cent tax on all profits above the 2021 average.