Cash-strapped Greece will provide 250 million euros ($331 million) in emergency funds to its ailing electricity providers to prevent a California-style energy crisis, government officials said on Friday.
The liquidity injection removes the risk of a financial chain reaction which, according to regulators, was threatening to bring the country's electricity system to its knees.
The temporary aid will shore up the accounts of main power utility PPC, allowing it to maintain operations and reimburse other suppliers of electricity and natural gas on whom the smooth functioning of the country's energy system depends.
"The measure was taken to bolster PPC's liquidity position," one official told Reuters after a cabinet meeting that authorised the move.
Greece's energy market has fallen into disarray due to a combination of stagnant power demand, rising fuel costs and a government decision to use PPC as a tax collection vehicle.