European Commission approves support for Czech companies facing higher energy costs

The European Commission (EC) has approved a scheme worth 800 million euros (19,3 billion Kč) to support companies in the Czech Republic facing higher energy costs due to Russia’s war in Ukraine. The Commission said so in a press release sent to ČTK. Large companies in all sectors will be eligible for the aid. The support scheme will take the form of direct grants to cover additional costs caused by an extraordinary increase in natural gas and electricity prices in the period from 1 January 2023 to 31 December 2023, compared with the period from 1 January 2021 to 31 December 2021.

The Commission concluded that the Czech support scheme is „necessary, appropriate and proportionate“ to remedy a serious disturbance in the economy of a Member State. The aid will be provided until 31 December 2023.

Recipients will become eligible for support once market natural gas and electricity prices exceed the maximum prices set under the scheme, namely approximately 210 euros/MWh (5 000 Kč/MWh) for natural gas and 105 euros/MWh (2 500 Kč/MWh) for electricity. The amount of support will correspond to the difference between the capped prices set under the scheme and market prices in 2023.

Eligible recipients will receive support through their energy suppliers, which will be required to sell natural gas and electricity at the maximum price set under the scheme. The state will then fully compensate them for the difference.

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