Temporary subsidies for increased natural gas and electricity prices

Energy cost containment program launched

Since July 15, 2022, energy-intensive and trade-intensive companies have been able to apply to the Federal Office of Economics and Export Control (BAFA) for a subsidy on their natural gas and electricity costs. The basis is the Directive on the Energy Cost Reduction Program from the German Federal Ministry of Economics and Climate Protection (BMWK).

The aim is to support companies that are particularly hard hit by high energy prices as a result of the Russian war of aggression on Ukraine. Companies in the eligible sectors within the European Union* are eligible to apply. Applications must be submitted via BAFA’s online portal by December 30, 2022.

The program allows affected companies to apply for a grant to cover energy costs from February 2022 to December 2022. For eligibility and application, the following must be taken into account.

Energy and electricity costs must be above 3% of production value (sales and goods for resale) and, if applicable, the operating loss
Energies taken into account: energy for heating and stationary motors + electricity
Eligible costs: additional costs, which are twice as high as in the same month in the previous year
Grants will be paid at the cost of natural gas and electricity in three stages from February to December 2022
Grant rates are 20-30%, 40-50%, or 60-70%, depending on the grant category per month
The subsidy levels differ according to the economic sector of the company, the subsidy rate, the maximum amounts and any operating loss, among other factors
The subsidy is capped at 50 million euros per company.

* Lists see leaflet (industries correspond to the known lists at the EEG).