The European Commission has announced it will extend the loosening of state aid rules by six months, until the end of June 2024, to allow EU Member States to compensate companies for high energy prices resulting from Russia's invasion of Ukraine and tensions in the Middle East. The Commission has adopted amendments to the provisions of the Temporary Crisis and Transition Framework enabling Member States to grant limited amounts of aid, as well as aid to compensate for high energy prices.
The limited amounts of aid (section 2.1 of the Framework) will be prolonged by six months until 30 June 2024. In addition, the ceilings set out for the limited amounts of aid are increased to cover the winter heating period. Aid to compensate for high energy prices (section 2.4 of the Framework) will also be prolonged by six months and will continue to apply until 30 June 2024. Under this section, Member States can continue to provide support by covering parts of additional energy costs only as far as the energy prices significantly exceed pre-crisis levels.
The State aid Temporary Crisis Framework, first adopted in March 2022, and subsequently amended in July and October 2022 and replaced in March 2023 by the Temporary Crisis and Transition Framework, enables Member States to provide timely, targeted and proportionate support to businesses in need.
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