“GAIA” tariff: Until June 26 the submission of applications by the owners of rural electricity connections

Until June 26, 2024, holders of agricultural electricity connections can submit their applications for the “GAIA” invoice to the partner provider. With the specific initiative of the Ministry of Environment and Energy they gain access to low electricity prices, in the long term, for a period of 10 years (2+8).

The “GAIA” tariff is included in the wider array of measures taken by the government to reduce agricultural energy costs and is implemented by the Ministry of the Environment, with the support of theMinistry of Rural Development and Food.

In the relevant Ministerial Decision (Government Gazette B’ 2214/11.04.2024), signed by the Minister of Environment and Energy, Mr. Thodoros Skylakakis and the Deputy Minister of Environment and Energy, Mrs. Alexandra Sdoukou, specifies the details for the implementation of the measure.

The same decision describes the integration process for consumers, who are owners of rural electricity supply, in a ten-year, interest-free settlement of overdue debts that providers are obliged to offer.

Prices

Indicatively, the prices that have already been announced for the total consumption of the first 2 years of application of the “GAIA” tariff are as follows:

• Owners of rural electricity connections who belong to cooperative schemes or practice contract farming without arrears: 9.3 cents per kilowatt hour
• Other holders of rural electricity connections without arrears: 9.8 cents per kilowatt hour
• Owners of rural electricity connections belonging to cooperative schemes or practicing contract farming with overdue debts: 10.5 cents per kilowatt hour
• Other holders of rural electricity connections in arrears: 11 cents per kilowatt hour

For the remaining 8 years for 1/3 of the consumption of the above beneficiaries, the price is uniform and is set at 9 cents per kilowatt hour.

For the remaining consumption (2/3) the owners of rural electricity connections have no obligation and can obtain it freely from the market (freely from the same or another provider). The relevant contracts are fixed, with a single withdrawal clause, amounting to 70 euros, in the event that the contract is terminated before its expiry by a natural person. In the event that the termination of the supply contract with the “GAIA” invoice is carried out before the expiration of its term of validity by a legal entity, the withdrawal clause is formulated in the context of the concluded contract between the two parties, observing proportionality in relation to the time of termination and the remaining contractual term.

Interested consumers, who own rural electricity connections, can be informed more extensively on their provider’s website about the characteristics of the “GAIA” supply tariff, as well as about the more specific conditions that will govern the supply contracts.

Furthermore, the farmers, with a simple electronic application on the special electronic platform of their provider, submit at least one Responsible Declaration (included in the Annex of the Ministerial Decision), signed via the gov.gr web portal, as well as the reference details of their provision.

Their application is evaluated immediately -within a minimum of working days- and in case the submitted supporting documents are correct, the beneficiaries are automatically included in the “GAIA” tariff.

Debt settlement

Furthermore, in the case of overdue debts, the electricity providers who undertake the representation of farmers with a supply contract with a “GAIA” invoice will include each party in a debt settlement program.

It is clarified that the inclusion in a debt settlement program is independent of the inclusion in a “GAIA” tariff, in case the beneficiary requests, exclusively, the settlement of his debts.

The amount of farmers’ debt that can be settled concerns debt created from outstanding electricity consumption bills up to and including December 31, 2023, while not including debts from consumption bills for the period from January 1, 2024 onwards. At the same time, the amount of the debt that can be settled should be greater than or equal to 100 euros.

The installments related to the repayment of the total amount of the debt are equal to 120 monthly and cannot be less than the amount of 10 euros/month. The installments may be paid in two equal half-monthly payments, until June 30 and until December 31, of each year. In the event that the consumer does not pay three monthly installments or a six-monthly installment on time is automatically excluded from the debt settlement program.

Finally, it is recalled that owners of rural connections that cover electricity consumption through the application of energy compensation with a RES station (net metering), cannot join the “GAIA” tariff for these services.

See the relevant Ministerial Decision (Government Gazette B’ 2214/11.04.2024) here.