This surge is placing additional strain on the government’s energy subsidy program, making it more difficult for the Ministry of Environment and Energy to fund retroactive subsidies for small businesses.
Initially, the Greek government planned to provide energy subsidies for December and January. However, as wholesale electricity prices soared in January, the program was expanded to include February. Now, with prices remaining high, additional funding will be required to cover March as well.
This unexpected increase means the government must secure extra funds to cover four months of electricity bills instead of the originally planned two. It also needs additional resources to support household subsidies, as February’s wholesale electricity price has risen to €154.09 per megawatt-hour—€18.96 higher than January’s €135.13.
The Greek government is now scrambling to revise its subsidy plan for approximately 600,000 to 700,000 small businesses, facing the challenge of securing additional funding.
Unlike household subsidies—where the government sets a price cap per kilowatt-hour and covers the difference—the small business subsidy program is structured differently. The government has allocated a total of €50 million, distributing it based on available funds rather than guaranteeing coverage for all businesses.
A key question remains: which businesses will qualify? Initial plans set the eligibility threshold at an annual turnover of €10,000, but this has yet to be finalized. According to government officials, the subsidies will be paid in March as a one-time retroactive payment covering previous winter months.
To apply, businesses must submit requests via an online platform set to launch in March. They will also need to submit two sworn declarations: one confirming they have not received more than €300,000 in total state aid (in line with EU regulations) and another stating that their annual turnover does not exceed the final cap.
This is necessary because Greece’s electricity distribution operator, DEDDIE, which will manage the application platform, does not have direct access to business revenue data.
