Newsflash on the energy costs subsidy for companies

On 31 January 2023 the National Council approved the extension of the energy costs subsidy for companies as announced in the media in December 2022 (see newsletter from 3 January 2023).

Specifically, the governing parties agreed to extend energy costs subsidy 1 (EKZ 1) until the end of December 2022 and to launch energy costs subsidy 2 (EKZ 2) for the year 2023. In addition, it was agreed to extend the lump-sum subsidy model for small and micro-enterprises to include this period of time. Austria Wirtschaftsservice Gesellschaft (aws, Austrian Promotional Bank) remains responsible for processing EKZ 1 and EKZ 2, while Österreichische Forschungsförderungsgesellschaft mbH (FFG, Austrian Research Promotion Agency) is responsible for handling the lump-sum subsidy model.

During the resolution process, the Business Energy Costs Subsidy Act (UEZG) was divided into three sections which define the application criteria for EKZ 1 and EKZ 2 and the lump-sum subsidy model.

EKZ 2, which applies from 1 January to 31 December 2023, differs from EKZ 1 on a number of points. What has changed in particular is that heat/cold and steam are also subsidised as energy sources. For the year 2023, subsidies of up to EUR 150 million per company can be granted. Moreover, the criterium of energy intensity will be dropped for the first two subsidy levels. In level 1, the funding intensity is to be doubled from 30% to 60%. The total funding volume has been increased to EUR 7bn. Details on the eligibility requirements are yet to be defined in the subsidy guidelines.

Written by: Christiane Zöhrer / Margarete Kinz