Government removes usage threshold TEK scheme

The cabinet has finally scrapped the threshold for eligibility for the Energy Costs Allowance (TEK) scheme. Companies using less than 5,000 m3 of gas or 50,000 kilowatt hours of electricity will now also be eligible. Economic Affairs and Climate Minister Adriaansens promised this in the House of Representatives on Thursday 10 November 2022.

The adjustment means 62,000 companies are now eligible for the support. This was originally 41,000. The subsidy is 50% of the cost increase of energy consumption above 1.19 per m3 for gas and 0.35 euro per kilowatt-hour of electricity. A maximum of 160,000 euros of support can be obtained per company. The cost of the package is estimated to increase by €500 million to €1.7 billion.

To be called energy-intensive, gas and electricity costs combined must be at least 7% of a company's turnover. That percentage was previously set at 12.5%, but has been revised downwards. Adriaansens expected that with the first adjustment, 85% of bakeries, 40% of food specialty shops and 36% of small breweries would already meet the conditions of the scheme. With the removal of the minimum consumption requirement, these percentages are likely to fall higher for different sectors.