They protect households from rising energy prices

Faced with a massive increase in energy bills as a result of the war in Ukraine and European sanctions against Russia, European countries have announced a series of measures to help consumers as no EU-level agreement has been reached on the best response to the energy crisis.

Germany has set aside 200 billion euros for a "defensive shield" for consumers, including gas price caps and fuel sales tax cuts to protect businesses and households from the impact of rising energy prices. Berlin's plans have caused discomfort among some members of the European Union who claim that poorer countries cannot afford it.

Germany proposed that the EU countries use the money from the fund and the recovery from the pandemic in the amount of 800 billion euros.

"If we all continue to adapt to the changed situation - citizens, companies and politicians - then we will get through the winter safely," said Šolc yesterday.

Depending on what they can afford, European countries have introduced different programs to help citizens and companies.

Croatia

Croatia capped electricity prices for households from October 1 to March 1 at 59 euros ($57,41) per megawatt hour (MWh) and 88 euros/MWh depending on how much electricity they use during the six-month period.

Northern Macedonia

North Macedonia's government has agreed a 350 million euro ($339,47 million) package to ease the economic impact of the energy crisis over the winter by helping companies maintain liquidity and vulnerable groups maintain basic living standards. In March, the government approved measures worth 400 million euros to help citizens and companies withstand the impact of the Ukrainian war on the economy.

Subsidies of 80 percent on the price of electricity for households will continue until the end of the year. Pensions will increase by 6,8 percent for 330.000 pensioners, as well as contributions to vulnerable groups, Prime Minister Dimitar Kovačevski said on Monday. The government will support wage increases in some parts of the public and private sectors and provide additional funds for farmers.

Grčka

Since last September, Greece has allocated over 9 billion euros in electricity subsidies and other measures to help households, businesses and farmers. For households with a monthly electricity consumption of up to 500 KWh - which is the majority of Greek homes - the subsidy will reach 436 euros per MWh, absorbing 90% of the bill increase. For those consuming 501 to 1.001 KWh per month and those consuming over 1.001 KWh, the subsidy will absorb 70-80% of the increase.

Bulgaria

From July until the end of the year, Bulgaria introduced a discount of 0,25 leva ($0,12) per liter of gasoline, diesel, liquefied petroleum gas and methane for households and abolished excise taxes on natural gas, electricity and methane. The Balkan country, an electricity exporter, has also kept household electricity prices regulated, allowing only an average annual increase of 3,4% since July.

Hungary

Since November, Hungary has capped retail fuel prices at 480 forints ($1,09) per liter, well below current market prices. The measure led to such an increase in demand that the government was forced to limit access to the program. Sharp rises in gas and electricity prices have also forced the government to reduce the multi-year cap on retail utility bills, setting the cap at the national average level of consumption.

Italy

In September, Italy approved an aid package worth around 14 billion euros to protect businesses and families from rising energy costs. The measures were on top of some 52 billion euros already budgeted from January to alleviate the energy crisis in Italy. The program also foresees a one-time aid of 150 euros for 22 million workers and pensioners with an annual income of less than 20.000 euros. Fuel excise duty cuts at the pump will remain in effect until November instead of October 17.

Poljska

Measures aimed at reducing energy prices in Poland will cost more than 30 billion zlotys (6 billion euros), Polish Prime Minister Mateusz Morawiecki announced in September. In 2023, Poland will freeze electricity prices for households using up to 2000 KWh per year, while a 10% reduction in electricity consumption will be rewarded with a 10% reduction in bill amounts. The government will spend 5-6 billion zlotys to support companies that use large amounts of energy in their work.

Francuska

France has committed to limit the increase in regulated electricity costs to 4%. To help with that, the government ordered EDF EDF.PA, which is 80% state-owned, to sell cheaper nuclear power to competitors. New measures announced since the Ukraine crisis - such as helping companies with higher gas and electricity bills - have lifted the value of the government's package to between 25 billion and 26 billion euros, Finance Minister Bruno Le Maire said.

Spain

Spain has begun temporarily subsidizing the electricity costs of fossil fuel power plants in an attempt to reduce high prices in the short term. The system should be in effect until May 31, 2023. It also cut taxes to reduce consumer bills and announced 16 billion euros in direct aid and soft loans to help companies and households cope with energy prices.

Norveška

Norway has been subsidizing household electricity bills since December and now covers 80% of the portion of electricity bills above a certain rate. This will be increased to 90% from September, with the scheme remaining in place until at least March 2023.

Sweden

Sweden has set aside six billion Swedish kroner ($531 million) to compensate households worst hit by rising electricity prices.

Finnish

The Finnish government announced in September that it plans to offer liquidity guarantees of up to 10 billion euros to the energy sector to help prevent a financial crisis.