An extension in extra time. The European Commission on Monday extended for six months, until June 2024, a system that allows member states to help companies facing rising energy prices, in the context of the war in Ukraine. It was initially scheduled to end on December 31, 2023.
This temporary instrument allows Member States to provide financial aid, in various forms, to compensate companies and, in particular, large energy consumers, penalized by the increase in gas and electricity prices.
“Vulnerable” energy markets
“Member States can only continue to provide support, covering part of the additional costs, if energy prices significantly exceed pre-crisis levels,” the Commission said in a statement.
Brussels strictly regulates public subsidies to companies to limit distortions of competition and protect the single market. But this framework was temporarily relaxed in the context of the war in Ukraine, which caused disruptions in energy markets.
Although the situation has stabilized since last year, geopolitical tensions continue to pose risks to supply and “energy markets remain vulnerable”, the Commission stressed.
Source: BFM TV