Factsheet for measure
HU-2022-40/2961
–
Updated
– measures in Hungary
Energy cost and investment subsidy programme for manufacturing SMEs
Feldolgozóipari KKV energiaköltség és beruházás támogatási program
Background information
The Russian-Ukrainian war and the resulting economic sanctions and countermeasures have led to an explosion of energy prices. This jeopardises the viability and competitiveness of energy-intensive manufacturing enterprises and also the jobs at those enterprises. As a response, the government offers a non-refundable subsidy for the affected small and medium enterprises (SMEs) to ensure their continuing operation and to help them retain the existing workforce. As laid out in government resolution 1477/2022, the subsidy is primarily given to cover a part of the energy cost increase. Furthermore, the enterprises can apply for additional subsidy to support energy-efficiency enhancing investments.
Content of measure
The first leg of the programme covers an expected energy cost increase for October, November and December 2022. The second leg is a capital subsidy to co-finance a credit-supported energy efficiency investment. Only beneficiaries of the first leg can apply for the second one.
SMEs whose main activity is manufacturing are eligible. The firm’s annual energy cost cannot be below 3% of its annual net sales turnover in 2021. Beneficiaries must implement an energy efficiency investment by the end of 2024, even if they are only in the first leg of the programme. They also cannot reduce their current workforce by more than 10% until September 2023.
The aid intensity is 50% for the first leg, that is, the subsidy amounts to 50% of the total increase of energy costs in the three months. Regarding the second leg, the subsidy cannot exceed 15% of the total net cost of the energy-efficiency investment.
The maximum amount of the subsidy is €500,000 – or €200,000 if requested as
de minimis
subsidy. The total amount allocated is roughly €240 million for the last quarter of 2022 and the same for the second round in the first quarter of 2023.
Updates
The following updates to this measure have been made after it came into effect.
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14 February 2023
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In February 2023, government resolution 1477/2022 has been updated to include a new target group, companies in the tourism and accommodation sector, and it has extended the programme until December 2025 (from 31 March 2023). The budget for the programme was set at HUF 100 billion (€263 million).
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Use of measure
The instrument is new, even the registration period has only begun. The applicants can submit their application for support until 26 December 2022. Therefore, it is not known yet how many SMEs will become beneficiaries under the scheme. Based on the sum allocated and the maximum amount per case, the number of beneficiary SMEs will surpass 480 and may reach a couple of thousand. This suggests that less than 5% of the active manufacturing SMEs may become a beneficiary of the programme
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
No involvement by social partners has been reported.
Views and reactions
Unknown.
Sectors and occupations
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This case is sector-specific (only private sector)
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Economic area
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Sector (NACE level 2)
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C - Manufacturing
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C10 Manufacture of food products
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C11 Manufacture of beverages
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C12 Manufacture of tobacco products
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C13 Manufacture of textiles
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C14 Manufacture of wearing apparel
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C15 Manufacture of leather and related products
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C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
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C17 Manufacture of paper and paper products
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C18 Printing and reproduction of recorded media
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C19 Manufacture of coke and refined petroleum products
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C20 Manufacture of chemicals and chemical products
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C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations
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C22 Manufacture of rubber and plastic products
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C23 Manufacture of other non-metallic mineral products
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C24 Manufacture of basic metals
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C25 Manufacture of fabricated metal products, except machinery and equipment
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C26 Manufacture of computer, electronic and optical products
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C27 Manufacture of electrical equipment
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C28 Manufacture of machinery and equipment n.e.c.
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C29 Manufacture of motor vehicles, trailers and semi-trailers
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This case is not occupation-specific.
Sources
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06 October 2022: government supports the manufacturing SMEs with HUF 200 billion (A kormány 200 milliárd forinttal támogatja a feldolgozóipari kkv-kat
(www.vg.hu)
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06 October 2022: Government resolution 1477/2022 on the support to energy intensive enterprise
(njt.hu)
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10 October 2022: Energy cost and investment subsidy programme for manufacturing SMEs: FAQ (Feldolgozóipari KKV Energiaköltség és Beruházás Támogatási Program 2022 GyIK
(nffku.hu)
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19 October 2022: Starting date of registration revealed (Kiderült, mikor indul a regisztráció az energiatámogatási programra
(www.portfolio.hu)
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24 October 2022: Energy cost and investment subsidy programme for manufacturing SMEs (Feldolgozóipari KKV Energiaköltség és Beruházás Támogatási Program)
(nffku.hu)
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14 February 2023: Govt resolution 1477/2022 updated
(njt.hu)
