![\"Gratis](\"https:\/\/images.pexels.com\/photos\/10407691\/pexels-photo-10407691.jpeg?auto=compress&cs=tinysrgb&w=1260&h=750&dpr=1\")
<\/p>\nThe European Commission has approved, under EU State aid rules, a \u20ac612 million Portuguese scheme to lower electricity levy rates for energy-intensive companies. The scheme intends to reduce the risk that these energy-intensive companies relocate their activities to countries outside the EU with less ambitious climate policies. An energy-intensive company is a business that consumes a large amount of energy as a core part of its production process.<\/p>\n
<\/p>\n
The Portuguese scheme<\/strong><\/p>\n Portugal has implemented several levies to fund its energy and environmental policies. This includes levies financing (i) electricity production from renewable energy sources, (ii) support for energy efficiency, and (iii) social tariffs and promotion of electricity generation in isolated regions.<\/p>\n The State aid scheme aims at lowering the levy rates for energy-intensive companies, to mitigate the risk that they relocate their activities to locations outside the EU with less ambitious climate policies. The scheme will run until 22 April 2035 and has an estimated budget of \u20ac612 million.<\/p>\n The measure will benefit companies in sectors that rely heavily on electricity and are particularly exposed to international trade, as listed in Annex 1 of the\u00a02022 Guidelines on State aid for climate, environmental protection and energy\u00a0(\u2018CEEAG’). Beneficiaries will receive a levy reduction between 75% and 85%, depending on their risk exposure. The applicable reduction must not result in a levy below \u20ac0.5\/MWh.<\/p>\n Under the scheme, beneficiaries will have to either (i) implement certain energy audit recommendations, (ii) cover at least 30% of electricity consumption with renewable energy sources, or (iii) invest at least 50% of the aid in projects leading to substantial reductions of the installation’s greenhouse gas emissions.<\/p>\n The Commission’s assessment<\/strong><\/p>\n The Commission assessed the scheme under EU State aid rules, in particular\u00a0Article 107(3)(c)\u00a0of the Treaty on the Functioning of the European Union (\u2018TFEU’), which enables Member States to support the development of certain economic activities subject to certain conditions. The Commission also assessed the scheme under the\u00a0CEEAG, which allow Member States to grant aid in the form of reductions from electricity levies for energy-intensive users.<\/p>\n In particular, the Commission found that:<\/p>\n On this basis, the Commission approved the Portuguese scheme under EU State aid rules.<\/p>\n\n