On Monday 20 November, the European Commission adopted a targeted amendment to the Temporary Crisis and Transitional Framework on State aid, extending a limited number of provisions of the framework which was adopted in response to the consequences in Europe of Russia’s war against Ukraine and, in particular, the surge in energy prices (see EUROPE 13138/1).
After initiating consultations with the Member States on 20 July and 6 November 2023, the Commission has decided, in view of the winter season and the increased energy consumption during this period, to partially adapt the timetable for phasing out the temporary framework, by prolonging by six months the provisions that allow Member States to grant limited amounts of aid (section 2.1 of the guidelines) and aid to compensate for high energy prices (section 2.4 of the guidelines).
The Commission says this extension will also facilitate the implementation of aid schemes adopted by the Member States.
This extension period is slightly longer than the three-month extension initially envisaged by the European Commission (see EUROPE 13286/18).
Specifically, the Commission will extend by six months, until 30 June 2024, the provisions of section 2.1 of the guidelines, which authorise the granting of limited amounts of aid.
In addition, the ceilings set for these limited amounts of aid will be raised to cover the period during which businesses will be using winter heating. These ceilings will be raised from €250,000 to €280,000 for the agricultural sector, from €300,000 to €335,000 for the fisheries and aquaculture sectors and from €2 million to €2.25 million for all other sectors.
Finally, the provisions of section 2.4 concerning aid to compensate for high energy prices are also extended until 30 June 2024. Member States will therefore be authorised, for a further six months, to provide support covering part of additional energy costs on the condition that energy prices significantly exceed pre-crisis price levels.
The other provisions of the Temporary Crisis and Transition Framework, i.e. sections 2.2 and 2.3, which relate to liquidity support in the form of public guarantees and subsidised loans, and section 2.7, relating to measures to support the reduction of electricity demand, are not affected by this decision. The Commission has announced that they will not be extended beyond 31 December 2023.
In addition, the sections of the framework relating to the transition to a net-zero economy (sections 2.5, 2.6 and 2.8) will remain available until 31 December 2025.
Finally, the Commission confirms that, at this stage, it does not foresee consulting the Member States any further on the provisions relating to the temporary framework crisis. As a result, these provisions should be phased out by 30 June 2024. (Original version in French by Émilie Varderhulst)