The European Commission has decided to temporarily allow member states to provide increased electricity discounts for certain businesses. The Commission announced this measure on Wednesday, stating that its goal is to ease the burden on the industrial sector during the ongoing energy crisis. To achieve this, the Commission is relaxing its stringent rules regarding state subsidies.
This new, limited framework for state aid remains valid until December 31, 2026. It is designed to mitigate the impact of the crisis on heavily affected sectors, including agriculture, fishing, transport, and energy-intensive industries.
Under the revised rules, member states must notify the Brussels authorities of their planned actions. The framework permits the offsetting of up to 70 percent of increased costs resulting from crisis-related price hikes in fuels and fertilizers. Furthermore, a simplified option is available that allows aid to be granted without requiring detailed proof of actual consumption. Critically, for energy-intensive industries, the subsidy intensity for electricity costs can be raised from 50 percent to as high as 70 percent, and this concession does not mandate additional investments in decarbonization.
The Commission has assured that it is ready to examine case-by-case, temporary measures aimed at reducing electricity costs. This policy development follows a request from the European Council for targeted measures to counteract sharp price increases in fossil fuels. Ultimately, this limited framework supplements the existing mechanisms available to member states to support businesses facing difficult circumstances.
