Extension of energy cost subsidy no. 1: guideline published

Due to the continuing sharp increase in energy prices, the extension of the funding period of the energy cost subsidy no. 1 to Q4 2022 was already legally anchored in the framework of the amendment of the UEZG in February. On 17 April, the guideline of the Federal Ministry of Labour and Economic Affairs for the energy cost subsidy no. 1 for Q4 was published, which provides precise details on the subsidy and its processing.

With the energy cost subsidy no. 1 extended to Q4 2022, in addition to the additional costs of electricity, natural gas and fuels (the latter as already known for the period from February to September only in stage 1) for the period from October to December, the additional costs for externally procured heating, cooling (incl. district heating) and steam will now also be subsidised.

However, the requirement of energy intensity (energy costs of at least 3% of the production value) remains unchanged for the energy cost subsidy no. 1 in Q4 2022 in order to be eligible for funding. The energy intensity is still to be determined on the basis of the financial statements for 2021. Nonetheless, companies applying for funding in stage 1 can continue to use an alternative comparison period for determining the energy intensity, which this time is the entire year 2022 (instead of only the months January 2022 to September 2022). Likewise, the requirement to comply with specific energy-saving measures has been extended until 30 June 2023. The terms and conditions for granting the energy cost subsidy remain largely unchanged (restriction of bonus payments, ban on speculation, etc.).

A welcome change was made to the list of particularly heavy affected sectors, which in the case of a loss are also eligible to apply for the fourth stage and thus for a maximum grant of up to EUR 50 million. Now certainly more sectors are included in this list, such as mining and the manufacture of various products like food, basic pharmaceutical products, ceramics or cement.

The energy cost subsidy no. 1 for Q4 2022 can be cumulated with the energy cost subsidy already granted for the funding period February 2022 to September 2022, whereby according to initial information from aws (funding agency), the grant ceilings of the individual subsidy stages are again (additionally) available; for example, in stage 1 up to EUR 400,000 grant can be paid out again. With regard to the minimum grant, due to the shorter funding period, only a grant limit of EUR 750 instead of the previous EUR 2,000 must be reached.

Applications will be submitted in the period from 17 April to 3 July 2023 (after the pre-application period ended on 14 April 2023), again via the aws funding manager, whereby the first come first served principle will apply. According to the published funding guideline, funding commitments are to be made by 30 September 2023 at the latest, with subsequent disbursement by the end of the year. 

The now published funding guideline and their contents are all subject to approval by the European Commission, which is expected in the next few days.