The European Commission has approved a CZK19bn (€800m) Czech scheme to support companies affected by increased energy costs in the context of the Russian invasion of Ukraine. The measure will be open to large companies in all sectors and it should take the form of direct grants to cover the additional costs due to exceptional price increases of natural gas and electricity recorded in the eligible period, specifically from 1 January 2023 to 31 December 2023, compared to the period from 1 January 2021 to 31 December 2021.
The support will be channelled to eligible beneficiaries through energy suppliers, who will have to sell natural gas and electricity at the maximum price set under the scheme (approximately €210/MWh (CZK 5,000/MWh) for natural gas and €105/MWh (CZK 2,500/MWh) for electricity), and will be subsequently compensated in full by the government. Energy-intensive companies may receive aid up to 65% of the eligible costs for the maximum aid ceiling of €50 million, with an option to receive up to 80% in aid of the eligible if those companies are active in particularly affected sectors, with a maximum aid ceiling of €150 million. The scheme will run until the end of 2023.
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