Greece to Impose Windfall Tax on Power Producers Amid Energy Crisis

Greece plans to impose a windfall tax on its power producers to alleviate the high cost of electricity for households burdened by the current cost-of-living crisis. The revenues from this tax will be used to subsidize electricity bills in August. The decision comes in response to surging wholesale electricity prices and rising power consumption exacerbated by climate change.

Greece will impose a one-off windfall tax on its power producers over the next two months to alleviate the financial burden on households grappling with soaring electricity bills, Prime Minister Kyriakos Mitsotakis announced on Tuesday.

Mitsotakis explained that the government plans to use the proceeds of this levy on gas-fired power producers to subsidize August electricity bills, as wholesale electricity prices have surged dramatically in recent weeks. The energy ministry is expected to detail the plan on Wednesday.

Persistently high temperatures this summer, following the country's warmest winter on record, have led to increased power consumption, straining the power grid and pushing prices even higher. Mitsotakis blamed a distorted European power market and called for action pending a broader European Union solution. Last month, Greece extended a windfall tax on energy companies for 2023 to support low-income pensioners, aiming to raise 300 million euros.