Factsheet for measure
LU-2022-14/2277
–
Updated
– measures in Luxembourg
Subsidy for costs of electricity and gas 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 of 22, 23 and 30 March 2022 on the impact of the war in Ukraine on costs, the Government undertakes to put in place new aids, both in the short term for companies heavily impacted by the rise in energy prices, and in the short and medium term to support companies in the energy transition and decarbonisation of their activities, in accordance with the European rules on state aid.
This scheme supports companies that qualify as high energy consumers (whose purchases of energy products account for at least 3% of their production value/turnover) in the industrial, craft and commercial sector.
Content of measure
The coverage will be between 30% and 70% of the additional cost exceeding the doubling of natural gas and electricity prices. In concrete terms, 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, i.e. two times 10, will be covered.
Companies whose energy purchases represent at least 3% of their production value/turnover are eligible. Discussions are underway to decide which one it will be.
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 have to 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.
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15 July 2022
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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.
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Use of measure
Not applicable yet.
Contents
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Other businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
Trade unions
Employers' organisations
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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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Consulted
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Consulted
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Form
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Consultation through tripartite or bipartite social dialogue bodies
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Consultation through tripartite or bipartite social dialogue bodies
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Social partners' role in the
implementation, monitoring and assessment phase:
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Social partners jointly
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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
