On October 19, 2022, the Ministry of Industry and Trade approved an update of the Support Program for increased costs of natural gas and electricity (hereinafter the “Program“), the legal basis of which is the Temporary Crisis Framework, which was approved by the European Commission on October 28, 2022.
The Ministry of Industry and of Trade now announces Call No. 1 from the Program (hereinafter the “Call“) for the period from February 1 to October 31, 2022 (eligible period).
In general
The amendment of the Program was preceded by Government Regulation No. 298 of October 5, which introduced a cap on the prices of electricity and natural gas for certain customers, including some enterprise. In other words, this means that the Program is intended for enterprises that do not belong to the category of customers with a state-set upper limit for energy prices determined by Government Regulation No. 298.
The estimated allocation amounts to CZK 30 billion. The support is provided in the form of a subsidy for part of the eligible costs and on the basis of the Decision on the provision of the subsidy issued by the support provider. For an approximate calculation, you can use the calculator in the AIS MPO system. Eligible costs are calculated from the prices of power electricity delivered from an external supplier and the actual purchase/absorption of natural gas, i.e. the so-called power bill without the component of regulated services (electricity or gas that is resold to other entities cannot be included).
Eligible applicant
An eligible applicant is an applicant who meets all of the following conditions:
- is juridical or legal person carrying out business activities on the basis of Act No. 455/1991 Coll., on trades (the Trade Licensing Act), as amended, or in a similar manner;
- has at least one collection and transfer point connected to the electricity or gas distribution system that is not covered by Government Regulation No. 298 of October 5, 2022 on the determination of electricity and gas prices in an extraordinary market situation, as amended;
- proves that in the eligible period from February 1, 2022 to October 31 2022, unit prices for gas or electricity increased more than twice compared to 2021;
- his business activity according to the CZ-NACE classification of economic activities does not fall into the exempted fields.
Amount of support
The amount of support ranges from 30-70% according to three categories of applicants:
- for an applicant who is not applying as an energy-intensive enterprise or an enterprise in selected sectors, 30% of eligible costs, up to a maximum of CZK 45 million per beneficiary.
- for an applicant who applies as an energy-intensive enterprise, the amount of support is 50% of the eligible costs, up to the lower of the amounts: 80% of the operating loss or CZK 200 million per recipient.
- for an applicant who applies as a business in selected sectors, the amount of support is 70% of eligible costs, up to the lower of: 80% of the operating loss or CZK 200 million per recipient.
The cumulative condition is that for the support of partner and connected enterprises, the total support may not exceed EUR 2 million. For a group in which support is requested by an energy-intensive enterprise (for which in 2021 the share of purchases of energy products and electricity for turnover was at least 3%), this limit is set to EUR 25 million, and for the group in which support is requested by Enterprises in selected sectors (an energy-intensive enterprise, more than 50% of its turnover in 2021 falls into the sector or sub-sectors listed in Annex 5 of the Challenges)a limit of EUR 50 million is set.
Turnover in this case means income from own performance and goods.
Submission and details of the application
The application is made through the system AIS MPO, which requires registration, if the applicant has not already done so in the past.
In the system, the applicant fills in the formal requirements, especially the name, registered office address, identification number and bank account to which the state support will be sent.
The applicant must attach to the application:
- affidavit of the applicant for support, see Appendix 1 Calls (The system generates automatically);
- statement of eligible costs according to Appendix 2 of the Call;
- in the case of monthly reporting of eligible costs, an independent auditor’s report on the verification task according to Appendix 6 A) of the Call.
If the applicant submits an application as an Energy-intensive enterprise or an Enterprise in selected sectors, he shall also submit:
- adjusted profit and loss statement compiled according to the requirements and criteria listed in Appendix 3 of the Call;
- report on the energy intensity of the enterprise according to Appendix 4 of the Call;
- an independent auditor’s report on the verification task according to Annex 6 B) or 6 C) of the Call.
In addition, enterprises in selected sectors are required to document:
- statement of the enterprise in selected sectors according to Appendix 5 of the Call.
Applications can be submitted from November 15, 2022, from 9:00 a.m. to January 31, 2023, midnight.
Conclusion
The Program of support for the increased energy costs sets suitable conditions for business to operate even during the ongoing energy crisis. Coordination in this area takes place at the level of the European Union, specifically through communication between the Ministry of Industry and Trade and the European Commission.
More information about the updated Program here:
In case of any questions or in case of support with the preparation of an application for support from the Program of support for increased natural gas and electricity costs, we are at your disposal – do not hesitate to contact us.
Mgr. Jakub Málek, maanging partner –malek@plegal.cz
Richard Adam, paralegal –adam@plegal.cz
16. 11. 2022