Background information

The Council of Ministers approved the Energy to Move Forward plan, through the Resolution of the Council of Ministers 87/2022, of 4 October. This measure establishes support mechanisms for companies dealing with rising energy prices.

The budget for this measure is €1.4 billion. The budget will help companies combat rising energy prices and mitigate the effects of inflation.

The current geopolitical context requires policies that respond to economic disruption and the effects of rising energy costs. The response to this increase in costs is also linked to the government's promotion of the digital and climate transition, the reduction of carbon emissions and the use of new technologies in the manufacturing of sustainable products.

Other related measures in the EU PolicyWatch include Support to the social sector and Strengthening the programme "Support for gas-intensive industries" .

Content of measure

The plan increases the maximum support that a company can receive from €400,000 to €500,000 and the support rate over the eligible cost from 30% to 40%. These changes also apply retroactively to previously submitted applications. Along with this support, companies are also eligible to receive:

• Up to €2 million if they have particularly high increases in the acquisition costs of natural gas.
• Up to €5 million if they have operating losses that are inhibiting their ability to stay in business.

The measure increases the appropriation allocated to the incentives system to €220 million. This is funded by the reimbursements from beneficiaries of European funds. The measure also increases the incentives scheme for agro-food processing companies to €15 million.

Use of measure

According to the Público newspaper on 25 May 2023, the IAPMEI (Agency for Competitiveness and Innovation) programme has awarded €85 million in subsidies to companies in various sectors in the past year.

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	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:

• Unknown
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were involed in the Tripartite Permanent Commission of Social Concertation (CPCS). This group includes government representatives; representatives of employer confederations, i.e., the Entrepreneurial Confederation of Portugal (CIP), the Confederation of Commerce and Services of Portugal (CCP), the Confederation of Farmers of Portugal (CAP), and the Confederation of Portuguese Tourism (CTP); and the representatives of trade union confederations, i.e., the General Confederation of Portuguese Workers (CGTP) and the General Union of Workers (UGT).

Views and reactions

The Portuguese Confederation of Micro, Small and Medium-Sized Enterprises believes that the government insists on the indebtedness of companies. At a time when many companies cannot cope with the increase in operating costs, the measures announced by the Government, "not only ignore them absolutely, but what they put forward most significantly, corresponds to €900 million of indebtedness in a broad manner for all companies".

Sources

• 15 September 2022: Government news on Energy to Move Forward (www.portugal.gov.pt)
• 15 September 2022: CPPME press release on Energy to Move Forward (www.cppme.pt)
• 04 October 2022: Resolution of the Council of Ministers 87/2022, of 4 october (dre.pt)
• 25 May 2023: IAPMEI - Programa Apoiar Gás (www.iapmei.pt)
• 25 May 2023: Governo retira programas de apoio ao custo do gás a partir de Julho (www.publico.pt)