First key points on the extension of energy costs subsidy 1 and energy costs subsidy 2

According to media information, at the end of 2022 the Austrian government has decided to extend the energy costs subsidy for energy-intensive companies (see also Newsletter dated 25 November 2022) until the end of 2022 and prolong it to 2023. This is intended to ensure the competitiveness of Austrian companies as well as to strengthen Austria as a business location during the crisis against the background of continuing price increases and the German gas and electricity price brake. The following details have been released (last update 3 January 2023):

Energy costs subsidy 1

The subsidy period of the energy costs subsidy 1 is to be extended from initially February 2022 to September 2022 until the end of December 2022.

There will be a separate application period for the subsidy period Q4 2022 and a subsidy for steam is to be newly added at level 1.

Energy costs subsidy 2

Within the framework of the energy costs subsidy 2, EUR 3,000 to EUR 150 million may be paid out per company for the subsidy period 1 January 2023 to 31 December 2023.

The amount of the subsidy is granted at five levels, while at the first two levels up to a subsidy of EUR 4 million, no verification of the minimum energy-intensity is needed.

The subsidy intensity is to be raised at level 1 from 30% to 60% and at level 2 from 30% to 50% (compared to energy costs subsidy 1). Thus, e.g., at level 1, 60% of additional energy costs are subsidised.

At level 1, inter alia, types of energy such as fuels, electricity, natural gas, heating/cooling (including district heating), steam, heating oil etc. and at levels 2 to 5, respectively electricity, natural gas and heating/cooling directly produced from natural gas and electricity (including district heating) are subsidised.

Details on the single subsidy levels of the energy costs subsidy 2:

• Level 1 (subsidy ranging from EUR 3,000 to EUR 2 million):
  • Energy-intensity: not necessary
  • Subsidy intensity: 60% of additional costs
  • Quantity consumed (subsidised): maximum of 100% of the 2021 consumption
• Level 2 (subsidy ranging from EUR 2 million to EUR 4 million):
  • Energy-intensity: not necessary
  • Subsidy intensity: 50% of 1.5 times the price increase
  • Quantity consumed (subsidised): maximum of 70% of the 2021 consumption
• Level 3 (subsidy ranging from EUR 4 million to EUR 50 million):
  • Energy-intensity: Energy costs amounting to 3% of the production value of 2021 or to 6% of the production value of the first half of 2022
  • Subsidy intensity: 65% of 1.5 times the price increase
  • Quantity consumed (subsidised): maximum of 70% of the 2021 consumption
• Level 4 (subsidy ranging from EUR 50 million to EUR 150 million):
  • Energy-intensity: Energy costs amounting to 3% of the production value of 2021 or to 6% of the production value of the first half of 2022
  • Subsidy intensity: 80% of 1.5 times the price increase
  • Quantity consumed (subsidised): maximum of 70% of the 2021 consumption
• Level 5 (subsidy ranging from EUR 4 million to EUR 100 million):
  • Energy-intensity: not necessary
  • Subsidy intensity: 40% of 1.5 times the price increase
  • Quantity consumed (subsidised): maximum of 70% of the 2021 consumption

As with energy costs subsidy 1 the application will be possible via aws Fördermanager.

Excluded are inter alia companies that according to national accounts are considered government units but also energy producing companies or refining companies as well as banking and finance companies.

Moreover, applicant companies need to fulfil additional criteria:

• Certain limitations at subsidy levels 3, 4 and 5 e.g., regarding profits
• Appropriate tax conduct, guarantee of employment until the end of 2024
• Limitations regarding bonus payments and dividends
• No subsidy in case of storage of storable energies

Legal provisions and approvals by the European Commission remain to be seen.

Authors: Cornelia Kalina, Margarete Kinz