Following the changes decided by the European Commission to the temporary crisis framework relating to the war in Ukraine, the Chamber of Deputies voted, on 20 December 2022, significant changes to the amended law of 15 July 2022 which aims to establish an aid regime for companies particularly affected by the increase in energy prices. The bill in question was introduced into the legislative process by the Minister of the Economy, Franz Fayot.
The first aid of this scheme allows to cover part of the additional costs in natural gas, electricity, as well as heating and cooling produced by these energy sources for companies that occurred between January and June 2023. Therefore, this aid is extended until mid-2023. Furthermore, following the amendments adopted by the Chamber of Deputies, this aid is no longer reserved for large energy-intensive companies. However, to benefit from it, companies must have a certain energy intensity, purchases of energy products and electricity must reach at least 1.5% of the turnover (or of the company’s production value). In addition, aid intensities and amounts have increased significantly and can reach up to 4 million, or even, in some cases, 75 million euros per company. The amounts disbursed are differentiated according to the energy intensity and the economic situation of the company.
Another change concerns companies that produce heat or biogas or companies that operate a heating network. A new aid is introduced to offset part of the additional costs in natural gas, electricity and biomass or heat that these companies incur, because they are unable to pass the price increase on to their customers. This aid will subsidize the additional costs of these companies providing heat and biogas to households and businesses between the months of January to June 2023 up to 2 million euros per group.
In his speech to the Chamber, the Minister of the Economy, Franz Fayot, recalled that the overall financial allocation foreseen for the aid scheme for companies particularly affected by the increase in energy prices is 375 million euro.
Extension of the state-guaranteed loan scheme for the Luxembourg economy
For the rest, the Chamber of Deputies has also adopted the bill which provides for the extension until 31 December 2023 of the aid scheme in the form of guarantees in favor of the Luxembourg economy. This state-guaranteed bank loan scheme aims to address the liquidity needs of companies established in Luxembourg that are feeling the economic consequences of the Russian military aggression in Ukraine.
Press release from the Ministry of Economy
