Head sounds alarm – energy aid for businesses will “not be enough”

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The federal government wants to help domestic companies through the energy crisis with a specially prepared aid package. More than 100,000 applications are expected – but the €1.3 billion budgeted will probably not be enough. In the economy there is now an urgent demand for a “2. Round”.

Electricity and gas have also become many times more expensive for companies. For some, this can be life-threatening. The cabinet has therefore put together a first aid package. Energy-intensive companies can submit an application until 28 November and receive, depending on the funding ratio, between €2,000 and €50 million.

When the jar is empty, it’s over
On the first day there were already about 30,000 applications and it is estimated that more than 100,000 companies will apply for the subsidies. The €1.3 billion planned so far will not be nearly enough. “We expect an amount of about €2.5 billion,” estimates Industry General Christoph Neumayer. This is not the only reason why the law needs to be changed quickly: it is now arranged in such a way that the money is paid out in the order in which applications are submitted. When the pot is empty, it’s over.

Help is spread out
The grants will be paid out in four phases. 30% of the price difference compared to 2021 for electricity, gas and fuel will be subsidized. In level one there is a minimum of 2000 and a maximum of 400.000 € per company. In phase two, some additional costs will be compensated if the electricity and gas prices have more than doubled (maximum two million euros).

For the higher subsidies (phases 3 and 4), the companies must demonstrate an operating loss in the months concerned, which can amount to €25 million or even €50 million in individual cases.

EU has already increased budget
However, this energy support will be granted retroactively for the period from February to September 2022. “That will not be enough, we need a second round in the winter. Many will only then feel the pain of the price increases,” says WKO secretary General Karlheinz Kopf.

The EU recently increased the grant framework until the end of 2023, so there would be room. One also looks at Germany, where the government even plans to grant generous aid without applications (!). Head: “It would be important for Austria’s competitiveness that we have comparable high subsidies.”

Source: Krone

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