Factsheet for measure
LU-2022-14/2277
–
Updated
– measures in Luxembourg
Subsidy for electricity and gas costs for high-energy intensive companies
Subvention pour les coûts de l'électricité et du gaz pour les entreprises à Subvention pour les coûts de l'électricité et du gaz pour les entreprises à forte intensité énergétiqu
Background information
In the framework of the tripartite meeting that took place from 22-30 March 2022 to discuss the impact of the war in Ukraine on costs, the government decided to provide new aid for companies. The measure will have impact both in the short term for companies struggling with the rise in energy prices, and in the medium and long term to support companies in the energy transition and decarbonisation efforts, in accordance with the European rules on state aid.
This scheme supports companies that qualify as high energy consumers in the industrial, craft and commercial sector. This qualification is defined as companies whose purchases of energy products account for at least 3% of their production value/turnover.
Content of measure
The funding will cover between 30% and 70% of the additional cost exceeding the doubling of natural gas and electricity prices. For example, if a price has risen from €10 to €22 per Kilo Watt hour (KWh), between 30 and 70% of the €2 in excess of 20 will be covered.
Companies whose energy purchases represent at least 3% of their production value/turnover are eligible.
The aid will go beyond the 30% of the extra cost, exceeding a doubling for companies making a loss and whose eligible costs are at least equivalent to 50% of that loss. They can be from industry, craft or commerce.
The bill will be validated by the EU in the coming weeks before it can be implemented.
The cumulative cost of all measures amounts to €827 million, spread over the budget years 2022 and 2023.
Updates
The following updates to this measure have been made after it came into effect.
|
07 March 2023
|
As part of a Tripartite meeting, the aid scheme for businesses particularly affected by the rise in energy prices has been extended until 31 December 2023, or even beyond, if the European Union so permits (https://www.chd.lu/fr/tripartite
|
|
20 December 2022
|
he extension of the aid scheme for energy-intensive businesses, designed to cover part of their additional natural gas and electricity costs incurred between January and June 2023, was approved on Tuesday 20 December 2022. Law 8107 provides for one change: in order to qualify for higher amounts of aid, companies will no longer be required to be energy-intensive or to incur operating losses as a result of rising energy prices
|
|
28 September 2022
|
An aid scheme for medium-sized energy-consuming businesses introduced following the Tripartite meeting of 28 September 2022 has been approved by the law of 1 January 2023. The measure covers the period from October 2022 to June 2023. It targets all medium-sized energy-consuming businesses for the month in question during the eligible period, provided that: purchases of energy products / turnover or production value ≥ 2%. Maximum support is 70% of eligible costs, up to €500,000 per group for the eligible period.
The aid scheme granted to energy-intensive businesses for the period from February to August 2022 targets businesses with energy purchases/sales or production value ≥ 3. The measure is extended for the period from September to December 2022 by considering the difference between unit prices and the quantity consumed during the month of the eligibility period and the reference month 2021 (https://legilux.public.lu/eli/etat/leg/loi/2022/07/15/a412/consolide/20230101)
|
|
15 July 2022
|
The law of July 15, 2022 (Memorial A Nr. 412 of July 29, 2022) transposes the decision taken in the framework of the tripartite to set up an aid scheme for large energy-consuming companies. This aid aims to offset part of the additional costs linked to the rise in electricity and natural gas prices.
|
|
12 April 2022
|
The European Commission has authorised a scheme to partially compensate energy-intensive companies for the rise in electricity prices. The measure aims to reduce the risk of "carbon leakage", when companies relocate their production to third countries with less ambitious climate policies, leading to a reduction in economic activity in the EU without any reduction in greenhouse gas emissions on a global scale.
With a total budget of almost €500 million, the scheme covers the period 2021-2030. The maximum amount of aid granted will be equal to 75% of the indirect emissions costs incurred, up to €50,000,000 per group for the eligible period, and provided that the eligible costs represent at least 50% of the monthly operating loss (EBITDA < 0), and that the company's sector or sub-sector is listed in the annex to the temporary framework. In certain cases, the maximum amount may be higher in order to limit the remaining costs of indirect emissions to a ceiling of 1.5% of the company's gross added value. (https://competition-cases.ec.europa.eu/cases/SA.63709
|
Use of measure
Not applicable yet.
Contents
Target groups
|
Workers
|
Businesses
|
Citizens
|
|
Does not apply to workers
|
Other businesses
|
Does not apply to citizens
|
Actors and funding
|
Actors
|
Funding
|
National government
Trade unions
Employers' organisations
|
National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Consulted
|
Consulted
|
|
Form
|
Consultation through tripartite or bipartite social dialogue bodies
|
Consultation through tripartite or bipartite social dialogue bodies
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Social partners jointly
-
Main level of involvement: N/A
Involvement
This decision was taken in the framework of the Tripartite meeting held on 22, 23 and 30 March 2022.
Views and reactions
Approval by two trade unions: Confédération luxembourgeoise des syndicats chrétiens (LCGB) and Confédération Générale de la Fonction Publique (CGFP), as well as by Union des Entreprises Luxembourgeoises (UEL).
Sources
