Greece's €95m power aid for industry: "up to 70%" applies only to a subsidised slice, and payment waits for 2027 and EU approval

Greece plans to pay up to €95 million towards energy-intensive manufacturers' 2026 electricity costs, but the money would arrive only in 2027 and the scheme still needs approval from Brussels.²³ The headline "up to 70%" is easy to misread: by our reading of the ministries' release, it is a cut in the price of a subsidised slice of a firm's consumption, not 70% off its whole bill.³

Who announced the €95 million scheme, and what is it?

Prime Minister Kyriakos Mitsotakis announced the measure on Tuesday 6 October 2026 at the annual general meeting of ΣΕΒ (SEV), the Hellenic Federation of Enterprises.²⁴ On 7 October 2026 two ministries published the details in a joint press release: the Ministry of Environment and Energy (Υπουργείο Περιβάλλοντος και Ενέργειας, Ypourgeio Perivallontos kai Energeias, known as ΥΠΕΝ or YPEN) and the Ministry of National Economy and Finance (Υπουργείο Εθνικής Οικονομίας και Οικονομικών, Ypourgeio Ethnikis Oikonomias kai Oikonomikon, known as ΥΠΕΘΟ or YPETHO).¹² The scheme has a fiscal ceiling of €95 million and will be finalised only after DG COMP, the European Commission's competition department, approves it.²³ The ministries say their talks with the Commission are already at an advanced stage.²³ They say the aim is to limit the burden on energy-intensive firms and, as far as possible, to stop the higher cost passing down the supply chain into consumer prices.³

Which EU rules does the scheme use?

The scheme rests on two EU state-aid frameworks.³ The first is the Clean Industrial Deal State Aid Framework (CISAF), which the Commission adopted on 25 June 2025 and which runs until 31 December 2030.³¹⁰ Under CISAF, aid can cut the electricity price by up to 50% for up to 50% of eligible consumption, and the final price of the subsidised consumption cannot fall below €50/MWh.³ The second is the Middle East Crisis Temporary State Aid Framework (METSAF), adopted on 29 April 2026 and running until 31 December 2026.³¹¹ METSAF allows the aid intensity to rise from 50% to up to 70% and, under conditions, lets the aid be combined with compensation for indirect CO₂ costs.³¹¹

Which firms qualify?

Eligible firms are in sectors highly exposed to international competition and at significant risk of production moving outside the EU.³ The release identifies them as industries in Annex 1 of the CEEAG, the EU's guidelines on state aid for climate, environmental protection and energy.³ Oil refiners are excluded, because the ministries say exceptional conditions in the energy market offset part of their higher energy costs.³ Mitsotakis named cement, food, paper and plastics among the sectors that would benefit.⁴⁶

Every beneficiary must put at least 50% of the aid into investments that cut CO₂ emissions and energy costs, such as renewables, storage and energy saving.²ΕΛ

Who is covered in each phase of 2026?

The release splits 2026 into two phases.³ From January to July 2026, under CISAF alone, the aid goes only to Annex 1 industries that do not receive CO₂ compensation and face a significant risk of losing competitiveness, covering up to 50% of their eligible consumption with a price cut of up to 50% and a €50/MWh floor.³ From August to December 2026, a period in which, the ministries say, wholesale electricity prices are rising, firms already receiving CO₂ compensation join the scheme and the price cut can reach up to 70%, again with a €50/MWh floor.²ΕΛ In that second phase, firms without CO₂ compensation can be subsidised on up to 50% of their consumption, and firms with it on up to 25% of their total consumption, which the release calls "50% of the 50%" (our translation).²ΕΛ

What does "up to 70%" mean in practice?

By our reading, the 70% applies only to the subsidised slice of consumption, and the €50/MWh floor limits it further.³ Fortune Greece reads the release the same way, writing that the cut "can reach up to 70% for the subsidised part" (our translation).⁵

By our reading, the cut of up to 70% applies only to a slice of consumption, and that slice can never be priced below €50/MWh.³

Take a hypothetical firm without CO₂ compensation paying €150/MWh in the second phase, and assume all its consumption is eligible.³ By our calculation, a 70% cut would take its subsidised half to €45/MWh, so the floor holds that half at €50/MWh, and its average price falls to €100/MWh, about a third lower.³ By our calculation, a firm with CO₂ compensation paying the same €150/MWh would have a quarter of its power at €50/MWh, an average of €125/MWh, about 17% lower.³ These figures are illustrations only: actual amounts depend on the final terms, the Commission's approval and the €95 million ceiling.²³

How much could firms receive, according to the Greek press?

The release gives no per-firm figures, so the numbers in Greek reports are estimates.³ ot.gr and ProtoThema put the value of the support at about €20–25 per MWh.⁶⁹ ot.gr and energymag report that about two-thirds of the €95 million, around €63 million in energymag's figure, would go to firms already in the CO₂ compensation mechanism.⁶⁷ energymag and Mononews report that about 600 mostly small and medium energy-intensive firms outside that mechanism use a little over 1 TWh a year.⁷⁸

What else does the government count as support?

The release places the scheme alongside existing measures.³ It says compensation for indirect CO₂ costs rose by €75 million for 50 companies, and that 23,000 businesses had their contribution to ΥΚΩ (Υπηρεσίες Κοινής Ωφέλειας, Ypiresies Koinis Ofeleias, the public service obligations (PSO) charge on power bills) cut by 50%.³ It also lists lower charges for networks, ΥΚΩ and excise duty.³ The ministries say these measures together are "approaching half a billion euros" (our translation).³ ΕΒΙΚΕΝ (Ένωση Βιομηχανικών Καταναλωτών Ενέργειας, Enosi Viomichanikon Katanaloton Energeias), the union of industrial energy consumers, called the scheme a "positive first step in the right direction" and said it awaited details of the measures and the terms for applying them, so that their effectiveness, and whether all eligible industrial consumers can use them, could be judged (our translation).¹²⁷

When will the money be paid?

Payments are due to start in 2027 and will cover eligible consumption in 2026.³ The ministries say the scheme will be finalised after DG COMP approves it, and the release does not mention a legal act to implement it.²³ No application process, administering body or funding source has been announced.²³ METSAF, the framework that allows the higher 70% intensity, runs only until 31 December 2026.¹¹