The European Commission has approved a 150-million-euro Greek scheme to support energy-intensive companies facing increased energy costs in the context of Russia’s war against Ukraine.
The plan was approved under the State aid Temporary Crisis and Transition Framework (TCTF), adopted by the Commission on March 9, 2023 and amended on November 20, 2023, to support measures in sectors which are key to accelerate the green transition and reduce fuel dependencies.
Under the scheme, the aid will take form of direct grants and will be channelled through electricity suppliers in the form of electricity bill reductions. The purpose of the scheme is to cover the additional costs for energy and trade intensive companies active in particularly affected sectors listed in Annex I of the State aid TCTF, due to exceptional price increases in electricity prices linked to the current geopolitical crisis.
The Commission found that the Greek scheme is in line with the conditions set out in the Framework. In particular, companies eligible under the scheme will be entitled to receive aid up to 80% of the eligible costs for the maximum aid ceiling of 150 million euros. The aid will be granted before September 30, 2024.
Furthermore, the public support will come subject to conditions to limit undue distortions of competition, including safeguards to preserve competition among suppliers and ensure that the aid is passed on to the final beneficiaries. 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 TCTF. On this basis, the Commission approved the scheme under EU State aid rules.