The energy cost subsidy I (EKZ I), which was intended to cushion the high energy prices for companies from 2022, cost the government less than half of what was budgeted for the support.
The application deadline for the subsidy expired in mid-February and 11,235 applications with a subsidy amount of 403.8 million euros had been submitted. Also this year there is energy assistance for companies with the EKZ II, the details are now fixed. “The energy cost subsidy I was cheaper than we thought,” said Minister of Economic Affairs and Labor Martin Kocher (ÖVP) in an interview with journalists. “We are glad that the budget was not exhausted.”
Originally, EUR 1.3 billion was available for the EKZ I. For EKZ I, which has been extended to the fourth quarter – originally financing only covered the period from February to September 2022 – the subscription period is just starting. The pre-registration starts on March 29, from then on companies have until April 14. The application phase is scheduled from April 17 to June 16. There are significantly more innovations in the energy cost subsidy II (EKZ II), which can be applied for throughout 2023. The background is mainly changes in the EU crisis aid framework.
condition for promotion
To receive financing, companies must meet certain conditions. There is a limitation on the payment of bonuses and dividends for all levels. The application must be submitted in two installments: for the first half of the year in the third quarter of 2023 and for the second half of the year in the first quarter of 2024.
There is also a flat-rate financing model for small businesses and sole traders that do not reach the minimum financing limit of 3000 euros. This provides a fixed subsidy between 110 and 2475 euros for companies that realize an annual turnover between 10,000 and 400,000 euros.
In addition, the amount of financing depends on the sector. The lump sum payment can be applied for retroactively for the year 2022. Processing takes place via the Research Promotion Office (FFG) and fully automatically. This should reduce bureaucratic red tape. Applications should only be reviewed if problems arise during the application process.
“Pre-Check” possible
Companies should be able to register with the FFG from mid-April for a ‘pre-check’ and then receive information about what needs to be prepared for the application. Applications should be available from mid-May. Public companies and companies from the energy, finance, real estate and agriculture sectors, liberal professions and political parties are excluded from the flat-rate financing model.
More planning security
The purpose of the financing is primarily to give companies “planning certainty when prices rise again,” says Kocher. For 2023, a total of 3.5 billion euros will be spent on energy support for companies. Kocher does not rule out that the costs for EKZ II may again remain below the estimated budget. But that also depends on how gas and electricity prices develop. “If prices remain as they are, I am optimistic that we will stay below seven billion,” said the minister. He also hopes for the EU model of coordinating gas purchases to dampen price volatility.
However, it is also clear that energy subsidies cannot be sustained in the long term. “I expect we won’t need that in 2024,” says Kocher. He also assumes that a joint European solution will be on the table this year.
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.
