From October 18 of this year, energy-intensive companies in the manufacturing industry may apply for the new aid programme to compensate the increase in electricity and natural gas prices for the period from February 1 to December 31, 2022.
The program was created with the aim of reducing the consequences of the Russian military aggression against Ukraine on the economy, which has resulted in a significant increase in the prices of energy resources. For industrial companies, the cost of energy in manufacturing is a much larger part of the costs than in other industries, so support is intended for energy-intensive enterprises to maintain and continue their activities.
Support is provided in the form of a grant.
The total state budget financing amounts to 50 million EUR.
The support program will be implemented by the State Construction Control Bureau of Latvia (SCCB).
!!! Decision-making and aid disbursement will begin after receiving approval from the European Commission.
Merchants who meet the following conditions may apply for support:
Support period: from
February 1, 2022 to December 31, 2022; for October, November and December, the support
is applied as an advance payment.
Grant support for one
merchant can be up to 30% of the eligible costs of natural gas or electricity, but
not more than 2 million EUR.
Eligible costs are
defined as the difference between the price per unit in a given month that the
merchant as a final consumer has purchased from external suppliers in the
period from February 1 to December 31, 2022, and would double (200%) the average
price per unit that the merchant paid in the period from January 1 to December
From September 1, 2022, the amount of natural gas and electricity used to calculate eligible costs may not exceed 70% of the recipient's consumption during the same period in 2021.
The following economic operators are not eligible for support:
Sectors not supported by the program:
If a merchant
operates in both the supported sector and the non-supported sector at
the same time, he can qualify for support by ensuring separation of
operations or costs.
Period for acceptance of applications: from 18 October 2022 to 17 November 2022 (inclusive).
A merchant can apply for support only once for the entire period or for a specific month/s when an increase in costs is detected.
Making a decision and paying a grant:
Decisions will be made by December 31, 2022. The grant payment will be made within 5 working days after the decision is made.
Support will be granted within the available funding, taking into account the order in which applications are submitted.
The recipient of the aid is obliged to keep the data on the aid for 10 years from the day when the decision to grant the aid was made.
During the aid monitoring period, SCCB will check:
If a violation of state aid requirements is found, the merchant is obliged to repay to the state budget all illegal state aid received together with interest.
The program is governed by Cabinet of Ministers Regulation No. 683 of 11 October 2022 "Procedure in which support is granted and administered to energy-intensive processing industry merchants in order to reduce the economic consequences of Russia's military aggression against Ukraine".
If you need help in attracting the mentioned support, please contact Leinonen SIA.
In addition, we can also provide support in other financing projects:
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