State aid: Commission further consults Member States on prolongation and adjustment of Temporary Crisis Framework


The European Fee is additional consulting the EU’s Member States on a prolongation and adjustment of the State help Non permanent Disaster Framework to assist the economic system within the context of Russia’s battle towards Ukraine. This follows a primary session of Member States launched on 5 October 2022.

In view of the extended aggression of Russia towards Ukraine and of its direct and oblique results on the economic system and on the power scenario, the Fee already consulted Member States, amongst others, on the doable prolongation of the Non permanent Disaster Framework and the addition of latest instruments aimed toward supporting electrical energy demand discount.

Making an allowance for suggestions already obtained from Member States and in gentle of the the latest Regulation on an emergency intervention to deal with excessive power costs (‘Regulation (EU) 2022/1854′) and the Fee’s proposal on a brand new emergency regulation, the Fee is now additional consulting Member States, specifically on doable amendments regarding:

  • A focused adjustment to broaden the chance for Member State to supply public ensures to power firms to be able to cowl the monetary collaterals for his or her buying and selling actions in view of present market costs and volatility; and
  • Further changes to additional permit Member States to supply assist to firms affected by excessive power costs. The primary goal of the proposal is to additional enhance flexibility for a quicker and more practical assist for firms which might be confronted with important will increase of their power prices whereas defending the extent taking part in area within the Single Market.

The proposed amendments complement Regulation (EU) 2022/1854. They intention at guaranteeing that the Non permanent Disaster Framework continues to allow Member States to supply vital and proportionate assist to the economic system whereas guaranteeing a stage taking part in area.

The Fee intends to undertake the revised Non permanent Disaster Framework by the tip of October, taking into consideration the suggestions obtained from the Member States and, the place related, components of the Fee’s proposal on a brand new emergency regulation to deal with excessive fuel costs within the EU and guarantee safety of provide this winter.

The State help Non permanent Disaster Framework, adopted on 23 March 2022, permits Member States to make use of the flexibleness foreseen beneath State help guidelines to assist the economic system within the context of Russia’s battle towards Ukraine.

The Non permanent Disaster Framework, as at the moment in pressure, gives for the next sorts of help, which may be granted by Member States:

  • Restricted quantities of help, in any kind, for firms affected by the present disaster or by the next sanctions and countersanctions as much as the elevated quantity of 62,000€ and 75,000€ within the agriculture, and fisheries and aquaculture sectors respectively, and as much as 500,000€ in all different sectors;
  • Liquidity assist in type of State ensures and subsidised loans;
  • Assist to compensate for prime power costs. The help, which may be granted in any kind, will partially compensate firms, specifically intensive power customers, for added prices as a consequence of distinctive fuel and electrical energy value will increase. The general help per beneficiary can’t exceed 30% of the eligible prices and – to be able to incentivise power saving – ought to relate to not more than 70% of its fuel and electrical energy consumption throughout the identical interval of the earlier 12 months, as much as a most of €2 million at any given time limit. When the corporate incurs working losses, additional help could also be vital to make sure the continuation of an financial exercise. Due to this fact, for energy-intensive customers, the help intensities are increased and Member States might grant help exceeding these ceilings, as much as €25 million, and for firms lively in significantly affected sectors and sub-sectors as much as €50 million;
  • Measures accelerating the rollout of renewable power. Member States can arrange schemes for investments in renewable power, together with renewable hydrogen, biogas and biomethane, storage and renewable warmth, together with by way of warmth pumps, with simplified tender procedures that may be shortly carried out, whereas together with ample safeguards to guard the extent taking part in area. Specifically, Member States can devise schemes for a particular expertise, requiring assist in view of the actual nationwide power combine; and
  • Measures facilitating the decarbonisation of commercial processes. To additional speed up the diversification of power provides, Member States can assist investments to part out from fossil fuels, specifically by way of electrification, power effectivity and the change to using renewable and electricity-based hydrogen which complies with sure circumstances. Member States can both (i) arrange new tender-based schemes, or (ii) immediately assist initiatives, with out tenders, with sure limits on the share of public assist per funding. Particular top-up bonuses could be foreseen for small and medium-sized enterprises in addition to for significantly power environment friendly options.

Sanctioned Russian-controlled entities can be excluded from the scope of those measures.

The Non permanent Disaster Framework, as at the moment in pressure, is relevant till 31 December 2022 for the liquidity assist measures and measures protecting elevated power prices. Assist supporting the roll-out of renewable energies and the decarbonisation of the trade could also be granted till finish of June 2023.

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