The European Commission has approved a €650 million Slovenian scheme to support companies facing increased energy costs in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on 9 March 2023 to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies. The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022 to enable Member States to support the economy in the context of the current geopolitical crisis, already amended on 20 July 2022 and on 28 October 2022.
The Slovenian measure
Slovenia notified to the Commission, under the Temporary Crisis and Transition Framework, a €650 million scheme to support companies facing increased energy costs in the context of Russia's war against Ukraine.
The scheme consists of two measures: (i) limited amounts of aid; and (ii) aid for additional costs due to exceptional natural gas and electricity price increases. Under both measures, the aid will take the form of direct grants.
The measure will be open to companies of all sizes and sectors, with the exception of the financial and insurance companies.
The purpose of the measure is to cover part of the increased costs of natural gas and electricity as well as of heating and cooling directly produced from the latter.
The Commission found that the Slovenian scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, for the first measure, the support will not exceed €2 million per beneficiary. For the second measure, the overall aid per beneficiary will not exceed 50% of the eligible costs, up to a maximum of €4 million. The beneficiaries incurring operating losses may receive further aid, not exceeding 40% of the eligible costs and up to a maximum of €100 million. Energy-intensive companies that incur operating losses may receive aid up to 65% of the eligible costs for the maximum aid ceiling of €50 million. Furthermore, those energy-intensive companies incurring operating losses that are active in particularly affected sectors, will be entitled to receive aid up to 80% of the eligible costs for the maximum aid ceiling of €150 million. Under both measures, the aid will be granted before 31 December 2023.
The Commission concluded that the Slovenian scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis and Transition Framework.
On this basis, the Commission approved the aid measures under EU State aid rules.
Background
On 9 March 2023, the Commission adopted a new Temporary Crisis and Transition Framework to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Green Deal Industrial Plan. Together with the amendment to the General Block Exemption Regulation ('GBER') that the Commission endorsed on the same day, the Temporary Crisis and Transition Framework will help speeding up investment and financing for clean tech production in Europe. It will also assist Member States in delivering on specific projects under National Recovery and Resilience Plans which fall within their scope.
The new Framework amends and prolongs in part the Temporary Crisis Framework, adopted on 23 March 2022, to enable Member States to use the flexibility foreseen under State aid rules to support the economy in the context of Russia's war against Ukraine. The Temporary Crisis Framework has been amended on 20 July 2022, to complement the Safe gas for a Safe Winter Package and in line with the REPowerEU Plan objectives. The Temporary Crisis Framework has been further amended on 28 October 2022 in line with the Regulation on an emergency intervention to address high energy prices and the Regulation enhancing solidarity through better coordination of gas purchases, reliable price benchmarks and exchanges of gas across borders.
The Temporary Crisis and Transition Framework provides for the following types of aid, which can be granted by Member States:
- Limited amounts of aid, in any form, for companies affected by the current crisis or by the subsequent sanctions and countersanctions up to the increased amount of €250,000 and €300,000 in the agriculture, and fisheries and aquaculture sectors respectively, and up to €2 million in all other sectors;
- Liquidity support in form of State guarantees and subsidised loans. In exceptional cases and subject to strict safeguards, Member States may provide to energy utilities for their trading activities public guarantees exceeding 90% coverage, where they are provided as unfunded financial collateral to central counterparties or clearing members.
