Reinforced and expanded aid, the government has tabled a bill to support businesses during the energy crisis.
After the modifications decided by the European Commission to the temporary crisis framework relating to the war in Ukraine, the Chamber of Deputies voted on Tuesday important changes to the amended law of July 15, 2022 which aims to put in place a regime of aid for companies particularly affected by the rise in energy prices. The bill in question was introduced into the legislative procedure by the Minister of the Economy, Franz Fayot.
The first aid from this scheme makes it possible to cover part of the additional costs in natural gas, electricity as well as heating and cooling produced from these energy sources for companies that occurred between January and June 2023. Thus , this aid is extended until mid-2023. Moreover, following the amendments adopted by the Chamber of Deputies, this aid is no longer reserved for large energy-consuming companies.
Up to 75 million euros per company
However, to benefit from it, companies must have a certain energy intensity and purchases of energy products and electricity must reach at least 1.5% of turnover (or of the production value of the company). In addition, the aid intensities and amounts are revised upwards and can reach up to 4 million, or even, in some cases, 75 million euros per company. The amounts allocated differ according to the energy intensity and the economic situation of the company.
Another modification concerns companies producing heat or biogas or companies operating a heating network. A new aid is introduced to offset part of the additional costs in natural gas, electricity and biomass or heat that these companies incur, because they are unable to pass on the price increase to their customers.
Aid extended until December 31, 2023
This aid will make it possible to subsidize the additional costs of these companies which supply households and businesses with heat and biogas between the months of January to June 2023 up to 2 million euros per group. During his speech in the Chamber of Deputies, the Minister for the Economy, Franz Fayot, recalled that the total financial envelope provided for the aid scheme for companies particularly affected by the rise in energy prices is 375 million euros.
For the rest, the Chamber of Deputies also adopted the bill providing for the aid scheme in the form of guarantees for the Luxembourg economy to be extended until 31 December 2023. This scheme of bank loans guaranteed by the State aims to meet the liquidity needs of companies established in Luxembourg which are affected by the economic consequences of the Russian military aggression in Ukraine.