Brussels, 16 February 2023
The European Commission has approved a €217 million (SEK 2.4 billion) Swedish scheme to support electricity-intensive companies in the context of Russia’s war against Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022, based on Article 107(3)(b) TFEU, recognising that the EU economy is experiencing a serious disturbance.
Under the scheme, the aid will take the form of direct grants. The purpose of the scheme is to cover the additional costs incurred by electricity-intensive companies due to the exceptionally high increases in the price of electricity, which cannot be passed on to final consumers or with which these companies are unable to cope.
The Commission found that the Swedish scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the individual aid amount will not exceed 50% of the eligible costs for the maximum aid ceiling of €4 million. In addition, the aid will be granted before 31 December 2023. The Commission concluded that the 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 Framework. On this basis, the Commission approved the scheme under EU State aid rules.
More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s war against Ukraine can be found here. The non-confidential version of the decision will be made available under the number SA.105491 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission