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Energy cost subsidy – key points of the subsidy

News Tax
Tax News - 30 Sep 2022 | 3 minutes read

Because of massively rising energy costs and the objective of relieving affected companies, the Federal Government has created the Energy Cost Subsidy Act. The first key points of the still outstanding directive have now been published. Additional energy costs in the period from 1 February 2022 to 30 September 2022 will be subsidised via four subsidy levels.

While the legal basis for this funding was already created in the summer with the Energy Cost Subsidies Act (Energiekostenzuschussgesetz, UEZG), the first details of these funding measures were now decided in the Council of Ministers on 28 September 2022:

  • Presentation to the Council of Ministers, „Energiekostenzuschuss für Unternehmen“, 30/10 (https://www.bundeskanzleramt.gv.at/medien/ministerraete/ministerraete-seit-dezember-2021/30-mr-28-sep.html – PDF retrieved 28.09.2022).

The detailed directive will only be published after approval by the EU.

1.

Key points

  • Eligible for application are energy-intensive, commercial and non-profit enterprises and entrepreneurial divisions of non-profit associations with their registered office or place of business in Austria, whose annual energy costs amount to at least 3 % of the production value or turnover. Companies with an annual turnover of up to EUR 700,000 are exempt from this criterion.
  • Among others, companies that are considered state units according to national accounts, but also energy-producing or mineral oil-processing companies as well as companies from the banking and financing sector are exempt. Likewise, enterprises in primary agricultural and forestry production; special measures are to be provided for this.
  • Eligible energy sources: electricity, natural gas and fuels (petrol and diesel).
  • Eligible period: 1 February to 30 September 2022
  • Registration: The energy cost subsidy is handled by Austria Wirtschaftsservice Ge-sellschaft mbH (aws). This registration will be possible in the aws funding manager from the end of October to mid-November 2022.
  • Application: Formal application submission should be possible from mid-November 2022. Only one application can be submitted per company. This must include all eligible forms of energy.
  • Payment: Payment will be made on the basis of the documents submitted with the application. Detailed random checks for a more comprehensive examination of the company information are again possible.
  • Subsequent subsidy audits: analogous application of the COVID 19 Subsidy Audit Act (CFPG) provided for.
2.

Four funding levels

Four funding levels are envisaged:

  • In stage 1, additional costs for electricity, natural gas and fuel are subsidised by 30 % of the price difference compared to the previous year. This stage is capped at EUR 400,000.
  • For the subsidy in stage 2, the prices for electricity and natural gas must have at least doubled. In this case, up to 70 % of the previous year’s consumption is subsidised with a maximum of 30 %. The maximum subsidy amount here is EUR 2 million, although fuels are not subsidised from this stage onwards.
  • From stage 3, companies must also demonstrate an “operating loss” due to the high energy costs. Maximum subsidies of up to EUR 25 million are possible here.
  • In stage 4, only selected sectors, such as steel manufacturers, can be supported. Grants of up to EUR 50 million are possible here.

A flat-rate model is to be applied for micro and small enterprises that do not meet the above requirements. Funding will be provided for 30 % of the halved energy costs in 2022 (optional: doubling of energy costs in 2021). The subsidy is to be provided on a flat-rate basis according to stages.

Our experts will be happy to support you in applying for the subsidy so that you can take all the necessary steps. We will help you to make the best use of the subsidy, with the application and with any required confirmations and checks relating to the energy cost subsidy.