The European Commission has approved a €1.4 billion Dutch scheme to support energy-intensive small and medium-sized enterprises ('SMEs') 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 foster 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 Dutch measure
The Netherlands notified to the Commission, under the Temporary Crisis and Transition Framework, a €1.4 billion scheme to support energy-intensive SMEs facing increased energy costs in the context of Russia's war against Ukraine.
Under the scheme, the aid will take the form limited amounts of aid in form of direct grants.
The purpose of the scheme is to cover part of the increased costs of natural gas and electricity and to mitigate their impact on those companies currently unable to cope with them.
The scheme will be open to SMEs across sectors, active in the Netherlands, whose purchases of natural gas and electricity amount to at least 7% of their annual turnover for year 2022. Credit or other financial institutions are excluded from the scheme.
Each potential beneficiary will be entitled to receive an aid amount covering 50% of the eligible costs, up to a maximum of €160,000.
The Commission found that the Dutch scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, the aid (i) will not exceed €250,000 per company active in the primary production of agricultural products, €300,000 per company active in the fishery and aquaculture sectors and €2 million per company active in all other sectors; and (ii) will be granted before 31 December 2023.
The Commission concluded that the Dutch 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.
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 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 first amended on 20 July 2022, to complement the Winter Preparedness Package and in line with the REPowerEU Plan objectives, and further revised on 28 October 2022, in line with the Regulation on an emergency intervention to address high energy prices ('Regulation (EU) 2022/1854') and the Commission's proposal on a new emergency regulation to address high gas prices in the EU and ensure security of supply this winter.
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.
