Support scheme for energy-intensive industries in relation to natural gas and electricity prices

16 August 2023 | Knowledge, News, The Right Focus

August of this year will see the launch of a support scheme for energy-intensive industrial enterprises. The scheme has a budget of PLN 5.5 billion, and participating enterprises can receive support of up to EUR 40 million.

Enterprises eligible to apply for a contribution to electricity purchase costs

To be eligible for the scheme, energy-intensive industrial enterprises operating in Poland should meet two basic conditions:

  • electricity or natural gas purchase costs in 2021 amounting to at least 3% of the value of sold production,
  • in the last completed financial year, core activity (accounting for at least 50% of revenues) in at least one of the PKD sub-classes included in sections “B” (mining and quarrying) or “C” (manufacturing).

Amount and conditions of aid

The scheme provides for both basic and enhanced support.

Basic support will be available to energy-intensive industrial enterprises whose core activity is included in catalogue “B” or “C” of the PKD code classification and whose electricity and natural gas costs in 2021 amounted to at least 3% of the value of sold production.

The value of sold production should be understood as the revenue generated from the sale of own products, works and services (excluding VAT) minus excise duty and plus subsidies received for the product. This does not include the value of sold products and services which were not produced by an enterprise but were purchased from external suppliers for resale.

The amount of support will be 50% of eligible costs, up to a maximum of EUR 4 million, calculated in total for all related entities registered in Poland.

Enhanced support will be available to enterprises also meeting the following additional conditions:

  • operating predominantly in sectors identified by the European Commission as particularly vulnerable to loss of competitiveness (e.g. mining, quarrying, energy-intensive manufacturing),
  • recording negative EBITDAs or a 40% decrease in EBITDA in 2023 compared to 2021,
  • submitting an energy efficiency plan by the end of Q1 2024, the implementation costs of which amount to at least 30% of the aid received.

Restrictions and exemptions

Enterprises entitled (during the period applied for) to purchase electricity at a fixed maximum price under the Act of 27 October 2022 on emergency measures to limit the level of electricity prices and to provide support to certain consumers in 2023 will be able to apply for support only for natural gas purchase costs. Support will not be available to enterprises that are in arrears with the payment of taxes that constitute state budget revenue and social security contributions, as well as to enterprises that are subject to sanctions imposed in connection with Russia’s aggression against Ukraine.

Application deadline and procedure

The application deadline will be 14 days. Applications will be submitted electronically in two rounds (in August and February 2024) via the National Fund for Environmental Protection and Water Management (NFOŚiGW) website. The funds will be disbursed within two months of the launch of the call in two rounds: in the form of a refund for the 1st and 2nd half of 2023 and, in the case of enhanced support, in the form of an advance for the whole of 2023.

Any questions? Contact the authors

Wojciech Wrochna

Jacek Kozikowski

Aleksandra Pinkas

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