The local economy is now breathing a sigh of relief: the coveted subsidy for energy costs in 2023 has now been presented. It costs as much as seven to nine billion euros, and the federal government pays between 30 and 150 million euros per applicant. Minister of Economic Affairs Kocher extends the period until the end of the year.
For the current year, 87,000 companies have already registered for the support (1.3 billion euros). The funding system has been expanded extensively for 2023.
Consists of five phases
The new energy cost subsidy has five levels and applies to electricity, gas, fuel oil, etc. What is new is that energy intensity is not a requirement in the first two levels, which benefits retailers and hoteliers, for example. In addition, the quota in phase 1 will be doubled from 30 percent to 60 percent of the additional costs.
An example:
A baker who has to pay 40 cents per kilowatt hour of electricity in 2023 instead of 20 cents, will be reimbursed 60 percent of the additional costs (20 cents) by the state. He thus receives an energy cost subsidy of 12 cents per kilowatt hour – for consumption as high as in 2021.
The higher the level, the stricter
In the following phases, the funding quotas and maximum amounts will change. The higher the level, the stricter the requirements: “There are restrictions on bonus payments and dividends,” explains Kocher. In addition, there is an employment obligation, in 2024 a company must retain 90 percent of its employees.
WKO chairman Mahrer, head of trade association Will and others applaud the new aid. Wifo boss Felbermayr criticizes that the subsidies are again very expensive and not accurate enough. Companies where energy accounts for only a small part of the costs also benefit from this. According to Agenda Austria, such generous support also lacks the incentive to save energy.
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.
