Lower threshold to compensate companies with high energy bills

The government lowered the threshold for small and medium businesses to qualify for financial compensation for their high energy bills. These so-called SMEs receive a subsidy if they spend at least 7 percent of their turnover on energy costs. The main goal was to introduce a threshold of 12.5 percent.

In October, the cabinet presented a plan to help bakers, saunas and other energy-intensive businesses during the energy crisis. Minister Adriaansens added that “targeted” pricing is clearly chosen for companies that are healthy in principle but use a lot of energy for production – for example, bread or greenhouse crops.

Insufficient

Criticism quickly emerged at the 12.5 percent threshold. MKB-Nederland said at the time that the program missed its target and that almost no company was eligible. Koninklijke Horeca Nederland (KHN) also found support insufficient and advocated a lower threshold.

According to a letter from Adriaansens to the House of Representatives, the cabinet is now complying with that request. According to him, this threshold was not well thought out in advance. “We tried to restore it quickly, and we hope companies will quickly see if they can get help now. It gives perspective.”

MKB-Nederland is pleased that the threshold has been lowered, and tens of thousands more entrepreneurs are now eligible to participate. However, according to the interest group, this correction is not sufficient. For example, the 160,000 Euros that can be given to entrepreneurs are “a drop in the ocean” for many.

Spring 2023

However, the implementation of the program will take some time. The EU Commission has to check whether the aid falls within the scope of illegal state aid, which can last until spring 2023.

Meanwhile, a more flexible stance of financial management would help SMEs with acute problems. Banks are also becoming more flexible in providing advances.