The European Commission announced the extension of a scheme that allows member states to support companies grappling with rising energy prices, amid the ongoing war in Ukraine.
This system, initially set to expire in December 2023, has now been extended for six more months, until June 2024.
This temporary mechanism permits member states to offer financial aid in various forms, aiming to compensate companies, particularly those with high energy consumption, affected by the surge in gas and electricity prices.
The Commission noted that member states could continue to provide support by covering a portion of the additional costs, only if energy prices significantly exceed pre-crisis levels.
Brussels strictly regulates public support for companies to maintain fair competition and protect the unified market. However, these restrictions have been temporarily relaxed due to the war in Ukraine, which has caused disruptions in energy markets.
It emphasized that despite some stabilization since last year, geopolitical tensions continue to pose risks to supply, and “energy markets remain unstable.”
This extension reflects the ongoing efforts to mitigate the economic impact of the war in Ukraine on European businesses and the broader energy market.
Earlier this month, the European Council and Parliament reached a consensus on a groundbreaking agreement aimed at monitoring and mitigating methane emissions in the energy sector.
This new legislation is scheduled to be in effect by early 2024, according to a statement released by the council on Wednesday.
Under the regulations, exporters of oil, gas, and coal will be obligated to regularly measure and report methane emissions associated with their products sold to the European Union’s 27 member states.
Spain’s acting Ecological Transition and Demographic Challenge Minister, Teresa Ribera Rodriguez, emphasized the importance of this legislation, stating, “Reducing methane emissions will help us to achieve the EU’s climate goals.”
