The cabinet has approved new measures aimed at reducing energy costs and supporting vulnerable households, including expanded electricity subsidies and VAT reductions on essential items.
The government will provide graduated electricity subsidies for vulnerable household consumers under Special Tariff 08 and commercial users under Tariff 010. Vulnerable households will receive 100% coverage under Special Tariff 08, which has been expanded to include low-income pensioners and single-parent families.
The expansion will benefit an additional 22,200 low-income pensioner households and 10,700 single-parent households who receive single-parent benefits. The subsidy will remain in effect until December 2025, with an estimated cost of €25 million.
The cabinet also approved an additional €15 million for an enhanced “Photovoltaics for All” scheme, which requires no initial capital investment. The programme will target large families living in small and medium-sized properties, with system capacity being the sole criterion. About 3,000 families are expected to benefit from this measure.
In a separate decision, the cabinet confirmed the zero VAT rate measure announced by the finance minister on 10 October 2024. The measure applies to baby nappies, baby milk, adult nappies, feminine hygiene products, and fresh fruits and vegetables. It will take effect on 4 November 2024 and run until the end of 2025, with an estimated cost of €5.1 million.
Read more:
