Greece's draft electricity law would halve the PSO charge on households' first 1,600 kWh every four months and let customers ask for fixed-price contracts

Greece's energy ministry wants to change two things on household electricity bills. A bill published for public consultation on 10 October 2026 would halve the public service obligations charge on every household's first 1,600 kWh every four months from 1 January 2027.¹ It would also let every electricity customer ask for a fixed-price contract lasting at least one year.¹ None of it is law yet: comments on opengov.gr, the government's consultation website, close at 10:00 on Saturday 24 October 2026.¹

The bill comes from the Ministry of Environment and Energy (Υπουργείο Περιβάλλοντος και Ενέργειας, Ypourgeio Perivallontos kai Energeias, known as ΥΠΕΝ) and is signed by the minister, Stavros Papastavrou.¹ It has 77 articles and transposes EU Directive 2024/1711 on the design of the electricity market.¹

What is the ΥΚΩ charge, and how much falls?

ΥΚΩ stands for Υπηρεσίες Κοινής Ωφέλειας (Ypiresies Koinis Ofeleias), literally "services of general interest" and known in English as public service obligations (PSO).¹ It is a regulated charge, set by law in euros per megawatt-hour (MWh), with separate rates for each category of consumer; the bill calls it «αντάλλαγμα Υ.Κ.Ω.» (the ΥΚΩ fee).¹ The ministry links the cut to the islands: connecting them to the mainland grid lowers the cost of supplying them with power.³⁶

Article 50 of the bill rewrites the ΥΚΩ table in law 4067/2012.¹ For low-voltage households, the rate on the first 1,600 kWh every four months falls from €6.90 to €3.45 per MWh, for consumption in both normal hours and reduced-rate hours (the so-called night tariff).¹ The higher bands do not change: 1,601–2,000 kWh stays at €50 per MWh in normal hours and €15 in reduced-rate hours, and 2,001 kWh and above stays at €85 and €30.¹ Article 77, paragraph 3, says article 50 takes effect on 1 January 2027.¹ΕΛ

Do heavier users get the lower rate too?

Yes, on their first 1,600 kWh every four months.¹ The bill says that when consumption passes a band's limit, only the excess is charged at the next band's rate.¹ΕΛ By our reading, a household using 2,500 kWh in four months would still pay €3.45 per MWh on its first 1,600 kWh.¹ When a billing period is not 120 days long, the band limits are adjusted in proportion.¹

How much will a household save?

A few euros a year, by our calculation.¹ By our calculation, a household using at least 1,600 kWh per four months saves €5.52 per four-month period, or €16.56 a year, before VAT.¹ By our calculation, a household using 300 kWh a month (1,200 kWh per four months) saves €4.14 per four months, about €1.04 a month.¹ eea.gr, the website of the Athens Chamber of Tradesmen (Επαγγελματικό Επιμελητήριο Αθηνών, Epangelmatiko Epimelitirio Athinon), gave a similar figure in September 2026: for a household using 300 kWh, the charge falls from about €2.07 to €1.04.⁸

Who pays for the cut?

Article 50, which makes the cut, does not say: it sets rates only.¹ Prime minister Kyriakos Mitsotakis announced the plan at the Thessaloniki International Fair (Διεθνής Έκθεση Θεσσαλονίκης, Diethnis Ekthesi Thessalonikis, known as ΔΕΘ) in September 2026.¹⁰ On 24 September 2026 Energy World reported that the measure covers about 6 million household connections and, citing ΥΠΕΝ, that €200m from the 2027 state budget would help clear an accumulated deficit in the ΥΚΩ account.⁷ Capital.gr also described the €200m as covering accumulated ΥΚΩ deficits, in 2027 as in 2026.⁹ By our reading, it is not simply the price of the cut.⁷⁹

Will fixed-price contracts become compulsory?

Not for customers.¹ Article 7 of the bill rewrites article 48Α of law 4001/2011.¹ It says suppliers "may" offer fixed-price contracts, and that all customers may ask for a fixed-term, fixed-price contract of at least one year, from at least one supplier and from every supplier with more than 200,000 customers.¹ΕΛ Suppliers may not change the terms of such a contract on their own or terminate it before it ends.¹ Before signing or renewing any contract, customers must receive a summary of its key terms: the total price and its breakdown, whether the price is fixed, variable or dynamic, the supplier's email and helpline, and any one-off payments, offers, extra services and discounts.¹

Under the bill, a supplier could not change a fixed-price contract's terms on its own or end it before it expires.¹

Customers with a smart meter, or where a smart meter can technically be installed, could ask for a dynamic-price contract, and a supplier would need each customer's consent before switching them to one.¹ The regulator, ΡΑΑΕΥ (Ρυθμιστική Αρχή Αποβλήτων, Ενέργειας και Υδάτων, Rythmistiki Archi Apovliton, Energeias kai Ydaton), would monitor these contracts and act against abusive practices and impermissible termination fees.¹ in.gr's headline, «υποχρεωτικά τα σταθερά τιμολόγια» ("fixed tariffs made compulsory", in our translation), can be misread: the duty falls on suppliers, not customers.²¹

Article 7 does not mention Greece's colour code for tariffs, explained in our tariffs guide.¹ Insider.gr reported in July 2026, citing unnamed officials, that ΡΑΑΕΥ would wait for this transposition before deciding on new light-blue tariffs, because the directive defines a fixed-price contract.¹¹ Michanikos Online reported on 14 September 2026 that the decision was still waiting.¹²

What else changes for households?

• Switching: changing supplier would cost nothing for households and small businesses.¹
• More than one contract: customers could hold more than one supply contract or energy-sharing agreement at the same time.¹
• Disputes: a supplier could not disconnect a customer or end the contract for reasons that are the subject of a pending complaint (if not filed more than twice) or of a dispute before the Energy Ombudsman (Ενεργειακός Διαμεσολαβητής, Energeiakos Diamesolavitis), the consumer authority or another out-of-court body.¹ The protection lapses if the out-of-court dispute is rejected as manifestly vague, unfounded or abusive, or if the 90-day deadline for examining it passes without a result.¹
• Supplier of last resort («προμηθευτής τελευταίου καταφυγίου»): customers left without a supplier through the old supplier's fault would be served for at least six months, up from three, according to press reports.¹³⁵
• Home solar: when the day-ahead wholesale price is negative, home panels in the special rooftop programme would be paid zero, not a negative price.¹ Press reports describe these as systems of up to 10.8 kW.³⁴

Data centres, islands and grid connections

Press reports of the ministry's summary say data centres would have to cover at least 60% of their yearly use from renewables, post a €200,000-per-MW guarantee and register with ΡΑΑΕΥ.⁴⁵⁶ They also describe an Islands Decarbonisation Fund for €2.3bn of projects, financed mainly by auctioning up to 25 million EU emission allowances.⁵ Grid-connection applications would become fully digital, with "flexible" connection contracts in congested areas.⁴⁵ We have not checked these provisions against the bill text.

Why is Greece doing this now?

Greece is late.¹⁴ The directive's general transposition deadline, which covers its fixed-price contract rules, was 17 January 2025, and its provisions on energy sharing and free choice of supplier were due by 17 July 2026.¹³ On 25 September 2026 the European Commission sent Greece a letter of formal notice for not fully transposing the rules on free choice of supplier and energy sharing, giving it two months to reply.¹⁴¹⁵

What happens next?

The consultation closes at 10:00 on 24 October 2026, and the bill sets no date for tabling it in Parliament or voting on it.¹ The ΥΚΩ cut would apply from 1 January 2027 only if the bill becomes law.¹