Belgium, (Brussels Morning Newspaper) The European Commission has approved Finland’s aid scheme worth 1 billion euro to support businesses in the crisis.
In a statement released on Thursday, the EC pointed out that it approved the scheme under the Temporary Crisis and Transition Framework adopted earlier this month.
The framework amends the Temporary Crisis Framework and is aimed at strengthening the green push, supporting economies and helping bloc members to transition away from fossil fuels.
Finland’s scheme includes direct grants worth 400 million euro for companies to help them pay electricity bills that will be channelled through power companies. It also includes 600 million euro worth of liquidity support loans to facilitate delayed payments.
The EC pointed out that beneficiaries can receive up to 250,000 euro under the first measure and added that households can benefit from the measure as well.
“Support to households, however, does not constitute state aid within the meaning of EU law and therefore does not fall under the Commission’s state aid assessment of a given measure,” the EC stressed.
The body added that the second measure will help “electricity suppliers that are currently facing liquidity shortages as a consequence of the extension granted to customers for the payment of electricity bills.”
Limited effects on competition
It noted that the Finnish scheme is in line with EU rules, includes safeguards to limit negative effects on competition and ensures “that the advantages of the measure are passed on to the largest extent possible to the final beneficiaries.”
Margrethe Vestager, European Commissioner for Competition, welcomed the scheme and pointed out that Finland will help companies to cope with rising price of electricity and pay their bills.
“The scheme will also allow support to electricity suppliers when facing significant liquidity shortages due to postponed payment of energy bills,” she added.
The Commission noted that aid under both measures will be provided by the end of the year and added that the scheme “is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state.”
The body reminded that it amended the Temporary Crisis Framework to speed up the transition towards renewable sources of energy and help the bloc to achieve its environmental targets.
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