Background information

As a consequence of the Russian invasion of Ukraine, energy prices have risen. Especially energy-intensive companies have been challenged by this. Thus, on 28 September 2022, the Austrian federal government announced to provide subsidies to those companies, retroactively from February 2022 on, as part of the latest anti-inflation package.

Content of measure

Companies whose energy procurement costs amounted to at least 3% of the production value in 2021 and whose national energy tax amounted to 0.5% of the value added in 2021 are able to apply for a subsidy. While at first, the programme was set to apply for 2022 only, in late December, it was extended (“energy cost subsidy 2”) to the year 2023.

Four different subsidy stages are differentiated for the energy cost subsidy 1 (2022):

• Stage 1: Energy cost subsidy for electricity, natural gas and fuel up to a maximum of €400,000: The price difference between 2021 and 2022 is subsidised with 30%.
• Stage 2: Subsidies up to a maximum of €2 million: The prerequisite for the subsidy in stage 2 is at least a doubling of the company's prices for electricity and natural gas. Up to 70% of the previous year's consumption is subsidised with a maximum of 30%.
• Stage 3: Subsidies up to a maximum of €25 million: From stage 3 and up, the companies must also be able to show an operating loss due to the high energy costs.
• Stage 4: Subsidies up to a maximum of €50 million: applies only to selected sectors

A subsidy limit of €2,000 was implemented.

Somewhat different regulations apply to the energy cost subsidy 2 (for 2023): Subsidies of between €3,000 and €150 million can be paid out for 2023. There are 5 funding levels in total - in the first two stages (up to subsidies of €4 million, there is no requirement for proof of a minimum energy intensity). The funding intensity is doubled in stage 1 from 30 to 60% and increased from 30 to 50% in stage 2.

Companies must meet several criteria in order to be eligible for the subsidies in levels 3, 4 and 5, e.g. profits. Furthermore, tax compliance is a requirement and there are also restrictions on bonus payments and dividends for grant-receiving companies.

Use of measure

As of 13 January 2023, almost €16 million have been paid out to 716 companies.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement as case not in social partner domain	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

Involvement unknown, but if there was involvement it most likely only applied to the employers' side.

Views and reactions

The Federal Economic Chamber had a positive view on the subsidies.

Sources

• 28 September 2022: Energy cost subsidy for companies and businesses: Subsidy guidelines and subsidy levels (www.wko.at)
• 22 December 2022: Energy cost subsidy 2 for companies and businesses: the key points at a glance (www.wko.at)
• 16 January 2023: Energy cost subsidy 1: Second pre-registration phase starts today (www.bmaw.gv.at)
• 25 February 2023: The federal government's energy cost flat rate provides relief for small businesses (www.ffg.at)