These are the subsidies on electricity bills

The subsidy covers invoicing for the period September – December 2022.

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The Ministry of Finance wishes to announce that the new subsidy measure for the cost of electricity consumption is based on graduated support, in order to encourage savings at the same time.

The measure benefits all households, small and medium enterprises active in trade and industry as well as the agricultural and livestock sector that uses electricity to pump water for irrigation and water supply purposes.

The subsidy covers the invoicing of the period September – December 2022 and concerns:

  • part of the increase in September's base price compared to June
  • part of the change in September's fuel clause rate compared to June
  • part of the change in September's weighted average fuel price compared to June
  • change in VAT charge from 5% to 19% for tariff 08, from 9% to 19% for tariffs 01 and 02 and from 5% or 9% to 19% for tariff 56B

The subsidy is tiered according to the amount of consumption and ranges from 50% – 85% for households and commercial and industrial charges with bi-monthly billings, as well as uses for water abstraction purposes for irrigation and water supply and/or rainwater abstraction. The subsidy for vulnerable households amounts to 100% of price increases.

It is noted that the increase in the cost of charging electricity consumption that will result from the return of the reduced VAT rates to the normal VAT rate from September 1, 2022, is compensated in its entirety, through an increase in the subsidy in addition to the partial coverage of the increases in the charging prices of electricity consumption between June and September 2022.

The scaling of the increase subsidy per user is shown in the table below: