Information on energy assistance and other actions for companies in Germany

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Since the spring of 2022, the government of the Federal Republic of Germany has put together three extensive relief packages amounting to 95 billion euros and put up a defensive umbrella of 200 billion. Together, the budget now totals almost 300 mld euros. The sharp rise in energy prices poses great challenges to entrepreneurs and in some cases threatens their very existence. You can find an overview of current support offers on this website.

Gas price brake for small and medium-sized enterprises (quota for natural gas and heat consumption)
 

  • Note: The Bundestag (15.12.2022) and Bundesrat (16.12.2022) have passed the final laws on the gas and electricity price brake. As soon as the exact text of the law has been published, the page will be updated. Please check back regularly for possible updates.
  • For private households, small and medium-sized enterprises with a standard load profile with a gas consumption of less than 1.5 million kWh per year, as well as care facilities, research and educational institutions, the consumption price for natural gas is to be capped at 12 cents gross per kilowatt hour from March 2023 to April 2024, for 80 percent of the annual consumption from the previous year.
  • The gas price brake (for gas and heat) is to apply from 1 March 2023 to 30 April 2024. In March, the relief amounts for January and February 2023 will also be applied retroactively. This will protect people and small and medium-sized enterprises from very sharp price increases for the whole of 2023 and into spring 2024.
  • The temporary gas price brake is also intended to help industry, which is affected by high prices, to secure production and employment from January 2023. Industrial customers are to receive from their suppliers 70 per cent of their natural gas consumption at 7 cents per kilowatt hour or 70 per cent of their heat consumption at 7.5 cents per kilowatt hour.
  • Draft law on the introduction of price brakes for grid-bound natural gas and heat and on the amendment of other regulations (external link)
  • FAQ of the Association of German Chambers of Industry and Commerce (DIHK) on the gas price brake can be found here: external link
  • Source: Federal Ministry of Economics and Climate Protection (BMWK)
Electricity price brake for small and medium-sized enterprises
  • Note: The Bundestag (15.12.2022) and the Bundesrat (16.12.2022) have passed the final laws on the gas and electricity price brake. As soon as the exact text of the law has been published, the page will be updated. Please check back regularly for possible updates.
  • The electricity price brake is also to apply from 1 March 2023 to 30 April 2024. In March, the relief amounts for January and February 2023 will also be applied retroactively here. The electricity price for private consumers and small and medium-sized enterprises (with an electricity consumption of up to 30 000 kWh per year) will be capped at 40 ct/kWh gross, i.e. including all taxes, levies, surcharges and grid fees. This applies to the basic demand of 80 percent of the forecast consumption (= historical grid consumption).
  • Withdrawal points with an annual consumption of more than 30,000 kWh, i.e. in particular medium-sized and large companies as well as industrial customers, receive a tariff capped at 13 cents/kWh. (plus grid charges, taxes, levies and surcharges) amounting to 70 percent of their historical grid purchases. In order to give the electricity supply companies sufficient time to implement the electricity price brake, the payment of the relief amounts for January and February 2023 is to take place in March 2023.
  • Draft Act on the Introduction of an Electricity Price Brake and on the Amendment of Other Provisions of Energy Law (external link)
  • Overview paper of the Federal Government on the gas and electricity price brake (external link | as of 25.11.2022)
  • FAQ of the Association of German Chambers of Industry and Commerce (DIHK) on the electricity price brake can be found here: external link
  • Source: Federal Ministry of Economics and Climate Protection (BMWK)
Peak compensation for the energy-intensive manufacturing industry
  • For around 9,000 energy-intensive companies in the manufacturing sector (UPG), the peak compensation for energy and electricity tax is to be extended for another year until the end of 2023. This is intended to ensure the continued competitiveness of energy-intensive and internationally competitive UPG in Germany. This tax relief enables the UPG to be reimbursed up to 90% of the energy and electricity tax on heating fuels and electricity remaining after deduction of the general tax relief for all energy and electricity consumption in a year, based on the pension insurance contributions.
  • Prerequisites are that these companies operate an energy or environmental management system and that the federal government has determined in each case that the annual target values for reducing energy intensity have been achieved.
  • The basis is the “Act to amend the Energy Tax Act and the Electricity Tax Act” (draft bill external link)
Emergency aid December 2022 (Soforthilfe Dezember 2022)
  • Through the emergency aid already decided, households and businesses with a consumption of less than 1.5 million kilowatt hours (kWh) of gas or heat per year will be waived one monthly payment in December 2022. This relief bridges the time until the introduction of the gas and heat price brake
Energy Cost Reduction Programme (EKDP) - Attention: extended until the end of the year!
    • Companies that are particularly affected by high energy costs can apply to the Federal Office of Economics and Export Control (BAFA) for a subsidy towards their natural gas and electricity costs. The subsidy is capped at 50 million euros per company. The aim is to cushion particular hardship in a targeted manner and to avoid situations that threaten the existence of these companies.
    • The basis is the guideline on the energy cost reduction programme published by the Federal Ministry of Economics and Climate Protection (BMWK) (external Link).
    • Companies operating in particularly energy-intensive sectors of the economy are eligible to apply.
    • The subsidies will be paid towards the costs of natural gas and electricity in three stages in the period from February to December 2022. The subsidy levels differ, among other things, according to the economic sector of the company, the subsidy rate, the maximum amounts and any operating loss.
    • Applications can only be submitted electronically via BAFA’s ELAN-K2 Online-Portal (external link).
    • It takes place in three phases:
        • Phase 1 material exclusion deadline 31.12.2022 (subject to approval by the European Commission) Registration in the portal, submit application, submit information and documents according to Phase 1 checklist After examination: reduction and advance payment 80 % of the total subsidy
        • Phase 2 material exclusion deadline 31.05.2023 (subject to approval by the European Commission) Submit details and documents according to checklist Phase 2 after successful review: final payment and 100 % grant
        • Phase 3 material cut-off date 29.02.2024 (only for funding levels 2 and 3) Submit information and documents according to the Phase 3 checklist Final statement of account and, if applicable, reclaim of overpaid subsidies
Possible short-term measures to save energy
  • A list of short-term measures for energy saving and energy substitution in companies can be found here: List of short-term measures (external Link)
  • Source: Efficiency Networks – Initiative Energy Efficiency and Climate Protection Networks
Special hardship provisions
  • Special hardship regulations apply to households, companies and institutions that are particularly affected by rising energy prices, e.g. tenants, housing companies, social institutions, culture and research.
  • The hardship provisions are intended to support hospitals, university clinics and care facilities in particular, as these are particularly heavily burdened and can rarely reduce energy costs through lower energy consumption or greater energy efficiency.
  • Note: If individual companies receive large amounts of funding, they must comply with the requirements of state aid law.
  • Source: FAQ of the Federal Government (external Link)
Relief for the gastronomy
  • To support the catering industry, the lower VAT on meals of 7 per cent will be extended until 31 December 2023. The aim is to ease the burden on the industry and not further fuel inflation. The scheme was originally temporary until 31 December 2022 to mitigate the economic impact of the Corona restrictions and support the restaurant industry during the reopening period.
  • Source: FAQ of the Federal Government (external Link)
Facilitation in insolvency law
  • The federal government’s goal is to prevent healthy companies from having to file for insolvency because prices are difficult to calculate.
  • Reliefs in insolvency law apply until 31.12.2023. For example, a shorter forecast period for the over-indebtedness test of four instead of 12 months applies. This means that companies do not have to file for insolvency if their existence is sufficiently assured for at least four months.
  • Source: FAQ of the Federal Government (external Link)

Note:

This website is continuously updated.

Informationsstand:

January 2023

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The information gathered here has been compiled to the best of our knowledge and belief. It does not replace a personal consultation and does not claim to be complete. All information without guarantee!

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