Industry caught in the throes of the energy crisis

Energy-intensive industries in Greece pay more than other European countries for gas and electricity and are nervous, especially after Energy Minister Kostas Skrekas made it clear last week that “there is no money.” While among the highest in Europe as a percentage of GDP, state subsidies in Greece are focused on households and micro-enterprises.

Tellingly, in December the subsidy for medium-voltage industries was reduced to 34 euros per megawatt-hour from November’s also low €50. New data show electricity prices will rise 20-30% compared to the forecasts and prices announced by suppliers on November 20.

The association representing the country’s energy-intensive companies has expressed fears they will have to pay €350/MWh for electricity in December. Some are considering reducing production, while others are mulling suspending operations or relocating to third countries.