€3.4 billion Danish scheme approved by the Commission to support energy intensive companies

Denmark notified to the Commission, under the Temporary Crisis Framework, a €3.4 billion (DKK 25.2 billion) subsidised loan scheme to provide liquidity support to companies in the context of Russia’s war against Ukraine.

The subsidised loan scheme consists of two different measures:

• a payment deferral of the bills for electricity, gas and district heating for all types of companies, administered by energy suppliers
• support for a total budget of €29 million (DKK 215 million) for energy suppliers covering their administrative costs linked to the payment deferral of energy bills

Under the first measure, the individual loan amount per small and medium-sized enterprise (‘SME’) and large company will cover the liquidity needs respectively for the 12 months and 6 months following the granting of the aid. Under the second measure, energy supply companies will be entitled to receive an individual aid amount equal to 15% of their average total annual turnover over the last 3 closed accounting periods, capped to a maximum of €134,500 (DKK 1 million).

The aid will not exceed €2 million per company and will be granted by 31 December 2023 at the latest.

Source: State aid: Commission approves €3.4 billion Danish scheme to support energy intensive companies in the context of Russia’s war against Ukraine