ATHENS - Greece will impose a one-off windfall tax on its power producers over the next two months and use the proceeds to help subsidise power bills for households already strained by a cost-of-living crisis, Prime Minister Kyriakos Mitsotakis said late on Tuesday.

Wholesale electricity prices have surged in recent weeks, and Mitsotakis said consumers would bear the burden unless the government takes measures.

"Therefore the government has decided to impose a one-off levy on gas-fired power producers and use the proceeds to be able to alleviate electricity bills in August," he said in an interview with Skai TV.

The energy ministry is expected to announce details of the plan on Wednesday.

Greece has experienced higher temperatures this summer after its warmest winter on record, weather conditions which scientists have linked to climate change.

Power consumption has increased over the past few months in Greece and other countries in Europe whose power grids are interconnected, leading to short supplies and higher prices.

Mitsotakis said the higher prices reflected a distorted European power market, adding that Greece needs to act pending a European Union solution.

Last month, the conservative government extended a windfall tax on energy companies for 2023, aiming to raise some 300 million euros to support low-income pensioners.

(Reporting by Renee Maltezou and Angeliki Koutantou; editing by Miral Fahmy)