Electricity cost compensation 2022
The Austrian Parliament passed the Electricity Cost Compensation Act 2022 (“SAG 2022”) in order to provide relief to Austrian companies, which were particularly affected by a significant increase in electricity prices following the integration of greenhouse gas emission costs from European emissions trading, and which were exposed to the actual risk of carbon leakage in 2022. In addition to the act, a corresponding directive was issued recently. In the following entry, we provide information on the most important points:
Eligible companies
Companies are eligible if they bear indirect CO2 costs, are subject to an actual risk of carbon leakage, and manufactured products in one or more facilities of the sectors or subsectors named in Annex 1 SAG 2022 in 2022.
Applications for aid can be filed for the share of the eligible annual electricity consumption exceeding 1 GWh used in a facility in 2022.
The following companies are not eligible for aid:
- Companies in difficulty pursuant to the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty;
- Companies that are subject to an outstanding recovery following a previous Commission decision declaring an aid unlawful and incompatible with the common market.
Eligibility criteria
- No exceeding of the maximum amounts pursuant to State aid law if the eligible costs are cumulated with subsidies or other support from other public entities.
- The 2022 electricity consumption of the facilities, which are the subject of the application, has to be supported with evidence.
- Obligation to perform an energy audit pursuant to Article 8 of the European Energy Efficiency Directive at the latest until 30 September 2023.
- Obligation to start the legally binding realisation of the investments recommended in the audit report with their payback period not exceeding three years and their costs proportionate, at the latest until the payment of the aid, and to report the finalisation of the investment at the latest 12 months after the aid was granted.
- If measures on the procurement of electricity from renewable energy sources are taken when implementing the recommendations of the audit report, these must cover at least 30% of the company’s electricity consumption at the site of the facility with electricity from renewable energies.
Amount of the aid
The amount of the aid is calculated
- pursuant to the calculation formulas provided in Annex 2 SAG 2022 of the electricity consumption efficiency benchmark or the fall back electricity consumption efficiency benchmark, as well as
- taking into account the CO2 emissions factor as defined in Section 2 para. 1 subsec. 6 SAG 2022,
limited to the eligible electricity consumption of the facility exceeding 1 GWh in 2022.
The amount of the aid determined per facility may not exceed 75% of the indirect CO2 costs charged. If the total sum of the aids to be granted exceeds the available funds, the aid is to be reduced on a proportionate basis
Application and deadline
The following documents are required for the application:
- Confirmation by auditor or tax advisor of the accuracy of the NACE classification of the facility;
- Depending on the calculation basis, the following information has to be submitted for the determination of the amount of the aid:
- Electricity consumption efficiency benchmark: Output and electricity consumption of the facility in 2022 regarding products of the sectors or subsectors according to Annex 1 SAG 2022;
- Fall back electricity consumption efficiency benchmark: Electricity consumption of the relevant facility in 2022 regarding products from the sectors or subsectors according to Annex 1 SAG 2022;
- Product benchmark or electricity consumption efficiency benchmark and fall back electricity consumption efficiency benchmark: Distribution and weighting have to be confirmed in writing by an auditor or a tax advisor. Disclosing the total electricity consumption does not suffice in this case.
- Calculation of output and actual eligible electricity consumption according to the requirements of the guideline on the electricity cost compensation 2022 including calculation report. The output determined in the calculation report as well as the disclosed electricity consumption have to be proven by submitting evidence signed by the auditor or tax advisor.
The energy audit report or energy or environmental management system report including a list and description of the measures to be implemented have to be submitted to aws (Austria Wirtschaftsservice) until 30 September 2023.
According to the aws homepage, applications can be filed as of 9 August 2023, the application has to be filed and sent at the latest until 30 September 2023 via the aws Fördermanager (Funding Manager)
For further information, please consult (available only in German): https://www.aws.at/stromkosten-ausgleich-2022/
Authors: Daniela Stastny, Cornelia Kalina, Alexandra Velic
