April 25, 2024 5 min read
Greek program of 800 million euros for the energy support of small businesses

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The European Commission approved Greek program of 800 million euros for the energy support of non-domestic electricity consumers. This approval comes in the context of Russia's war against Ukraine. It is included in the temporary state aid crisis framework.

The provisional framework for state aid was issued by the Commission on 23 March. 2022. Amended on 20 July 2022, based on Article 107 of the Treaty on the Functioning of the European Union (TFEU). The temporary framework recognizes that the EU economy is experiencing serious disorder.

Greece notified the Commission, based on the temporary crisis framework, of a program amounting to 800 million. EUR to support small non-household electricity consumers, who are particularly vulnerable to sharp increases in electricity prices. Increases caused by the current geopolitical crisis and related sanctions and countermeasures.

Non-domestic consumers of electricity active in Greece and affected by the crisis will be able to be included in the measure, who either:

i) have contracted for a variable electricity supply tariff and the energy supply does not exceed 35 kVA

ii) operate as bakeries (regardless of supply limit)

iii) have a rural tariff (regardless of the supply limit)

From 1 October 2022 onwards, the measure will cover consumption of up to 2,000 kWh per month for non-domestic electricity consumers with a power supply of up to 35 kVA.

Στο πλαίσιο αυτού του προγράμματος, οι επιλέξιμοι δικαιούχοι θα δικαιούνται να λαμβάνουν περιορισμένα ποσά ενίσχυσης με τη μορφή άμεσων επιχορηγήσεων. Το μηνιαίο ποσό επιδότησης ανά εταιρεία θα καθορίζεται ανάλογα με την τιμή χονδρικής πώλησης ηλεκτρικής ενέργειας στην αγορά.

The Commission found that the Greek program is consistent with the conditions provided for in the temporary crisis framework. In particular, the aid:

i) shall not exceed EUR 62 000 per enterprise active in the primary production of agricultural products, EUR 75 000 per enterprise active in the fisheries and aquaculture sector and EUR 500 000 per enterprise active in all other sectors

ii) will be granted no later than 31 December 2022

The Commission concluded that the Greek program is necessary, appropriate and proportionate to remove a serious disruption of the economy of a member state, in accordance with Article 107 paragraph 3 letter b) of the TFEU and the conditions set out in the temporary crisis framework.

On this basis, the Commission approved the aid measure under EU rules. for state aid.

Margrethe Vesteyjer, Vice-President of the Commission responsible for competition policy spoke about energy support

"Russia's unjustified war of aggression against Ukraine continues negative effects on the EU economy and in the Greek economy. The approved 800 million euro program will givethe ability for Greece to support the affected sectors and businesses. Especially the smaller ones, ensuring that sufficient liquidity remains available. We continue to support Ukraine and its people. At the same time, we continue to work closely with Member States to ensure that national support measures can be implemented in a timely, coordinated and effective manner. While protecting a level playing field in the single market."

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