The European Commission announced this week its approval of an €800 million scheme in support of Czech companies suffering increased energy costs from the Russia-Ukraine war.
Though the scheme was approved within the context of the State Aid Temporary Crisis and Transition Framework for industries that are key for the transition to a net-zero economy, the aid will be available to large companies across all sectors in support of Czechia's economy.
"This €800 million scheme will help Czechia compensate large companies for their increased gas and electricity costs in the context of the current energy crisis. At the same time, it ensures that distortions of competition are kept to a minimum," said Margrethe Vestager, Executive Vice-President in charge of competition policy.
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The aid will be delivered in the form of direct grants to cover the increased prices of natural gas and electricity specifically from 1 January 2023 to 31 December 2023 compared to the same dates from 2021.
The amount of aid will correspond to the difference between the prices set by Czechia's scheme for natural gas and electricity (€210/MWH and €105/MWH respectively) and the actual market prices of gas and electricity of 2023, within the limit of aid allowed by the Temporary Crisis and Transition Framework.
This comes as one of many measures adopted by the EU Commission to tackle rising energy costs resulting from Russia's war on Ukraine.
