An energy ministry decision, reached earlier this month, offering additional electricity subsidies to enterprises in categories up to 35kVA and all bakeries, regardless of energy consumption levels, without having been given the green light to do so by the European Commission, has led to major financial issues for suppliers, caught up in a situation where, among other things, they must either seek reimbursement from their customers or accept having lost these amounts by sacrificing funds through no fault of their own.

European Commission approval for additional electricity subsidies to these consumer groups expired in November.

This measure was launched in April, 2022, when the energy ministry asked suppliers to provide extra subsidies to these consumer groups, retroactively, from January, 2022. These additional subsidies have been offered on a monthly basis, following related monthly updates from the energy ministry to suppliers.

Brussels’ approval, last April, was offered under the condition that the additional-subsidies measure would only cover enterprises consuming up to 35kVA and all bakeries as long as they had not previously received state support exceeding specific limits. This means some recipients of these extra subsidies in 2022 may not have been eligible.

Making matters even more complicated for electricity suppliers, the energy ministry’s decision to keep offering additional electricity subsidies to these consumer groups will force suppliers to check customers for any excess state funds.