Brussels, 19 June 2023
The European Commission has approved an approximately €718 million (CZK 17 billion) Czech scheme to support companies affected by increased heat energy costs in the context of Russia’s war against Ukraine. The scheme was approved under the State aid Temporary Crisis and Transition Framework.
Under the scheme, the public support will consist in limited amounts of aid in the form of rebates. Heat energy producers can apply for support based on the increase of production costs recorded in the eligible period from 1 February 2022 to 31 December 2023, compared to the reference period from 1 January 2021 to 31 December 2021. The support will then be fully channelled to the eligible beneficiaries, who will benefit from reduced payments for heat energy. The scheme will run until the end of 2023.
The Commission concluded that the Czech 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 measure under EU State aid rules.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said:
“This €718 million scheme will enable Czechia to mitigate the impact of the increased energy costs on its economy. This ensures that distortions of competition are kept to a minimum”.
A press release is available online.
Source – EU Commission