EU Increases Energy Cost Relief For Small Businesses

The European Commission has increased the limit for energy cost subsidies from 50 percent to 70 percent. The relief measures are set to remain in effect until the end of the year. Direct aid of up to 50,000 euros will be made available through simplified processes. New EU regulations allow for up to 70% of extra costs for fertilizers and pesticides to be covered by state aid. Previously, the threshold was set at 50%. European Union Member States may now compensate up to 70% of additional costs incurred from rising fuel and fertilizer prices compared to levels before February 28. A simplified compensation option of up to 50,000 euros per beneficiary has also been introduced. European Commission Vice-President Teresa Ribera presented solutions for member states to support electricity-intensive companies. Under the new plans, extra costs for energy can be offset by up to 70 percent, up from the previous 50 percent. Direct aid of up to 50,000 euros will be distributed with reduced bureaucratic requirements. The Commission stated it reserves the right to regularly review these relaxations based on the progress of the war. Competition Commissioner Teresa Ribera said the transition to clean energy during the announcement.