Energy cost subsidy 1 & 2 and lump sum subsidy model

The Energy Cost Subsidy 1 & 2 (ECS 1 & 2) and lump-sum subsidy model  aimed to cushion the increase in prices for electricity, natural gas and fuels, for companies and commercial associations to support local economy and businesses. ECS 1 and 2 were introduced in 2022 and 2023 respectively. 

The schemes differentiated the amount of subsidies to the companies based on their energy intensity.  Compared to the ECS 1, ECS 2 allowed in-principle higher subsidies and subsidy intensities in the individual stages and made additional types of energy eligible for subsidies. A lump sum subsidy model was also created to cater to micro and small enterprises whose support was below the lower funding limit of the ECS. Companies not eligible for support include energy-producing and mineral oil-processing companies or primary agricultural and forestry production

In total, 2022-2023 budgetary for ECS 1, ECS 2 and the lump-sum subsidy model amounted to a maximum of €7.0 billion.

Want to know more about this policy ? Learn more