Due to the increased prices for electricity, natural gas and fuel, the cabinet has decided to extend and broaden the energy cost subsidy for energy-intensive companies. The energy cost subsidy 1 is extended with a separate application phase until the end of the year. The energy cost subsidy 2 applies for the whole of 2023. Between 3,000 and 150 million euros can be paid out per company.
“Given the permanently increased energy prices and the German decision on a brake on electricity and gas prices, Austrian companies will also need further relief in 2022,” Minister of Economic Affairs and Labor Martin Kocher (ÖVP) said on Thursday according to the broadcast.
Grant 1 will be extended until the end of the year
The original grant period for Energy Cost Subsidy 1 ran from February through September 2022 and will now be extended through December 2022. The application phase will run until February 15, 2023. Nearly 100 applications have already been paid out, Kocher told the APA. A budget of 1.3 billion euros was foreseen for the period from February to the end of September. “I assume we can work it out.” The subsidy is processed on behalf of the Ministry of Economic Affairs by the aws (Austria Wirtschaftsservice Gesellschaft), the federal development bank.
“But it is clear that next year, of course, a higher amount will be needed – it is about the whole year, it is about comprehensive financing criteria. The cost increases are also higher because many companies did not have such high cost increases for energy sources in the summer because they had taken out insurance or because they had long-term contracts.
Financing for fuel, electricity, natural gas & Co.
Within the framework of the energy cost subsidy 2, € 3,000 to € 150 million can be paid out per company. There are a total of 5 funding levels. No proof of minimum energy intensity is required in the first two phases up to a financing amount of EUR 4 million. The financing intensity will be doubled from 30 to 60 percent in phase 1 and increased from 30 to 50 percent in phase 2.
This means that in the first phase 60 percent of the increase in energy costs will be subsidised. In phase 1, fuels, electricity, natural gas, heat/cold, steam and fuel oil are promoted. There are no subsidies for state-owned, energy producing or mineral oil processing companies or banks.
Employment guarantee required until the end of 2024
In the higher funding levels, there are restrictions on profits, bonus payments and dividends. In addition, as in Germany, an employment guarantee is required until the end of 2024.
Approximately 87,000 companies have now registered for the energy cost subsidy1, 1,715 companies have submitted applications and 5 million euros have been paid out.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
