EU Unveils Temporary Electricity Price Aid for Energy-Intensive Industries

The European Union plans to introduce temporary electricity price relief for energy-intensive industries, as outlined in a draft by the European Commission. This aid will be in effect for up to three years, helping industries manage costs until the decarbonisation of the Union's electricity system reduces prices.

The European Union is set to reveal new state aid rules on Wednesday, aimed at offering temporary electricity price relief for energy-intensive industries. A European Commission draft, obtained by Reuters, highlights the persistent cost disparities faced by these industries compared to competitors in regions with less stringent climate policies.

Under the proposed rules, eligible companies can receive electricity price relief for a period of up to three years, but not extending beyond December 31, 2030. The relief, however, is capped at covering no more than half of the yearly average wholesale electricity price and cannot exceed 50% of the company's total annual electricity consumption.

The initiative comes as part of the EU's ongoing efforts to balance the transition to a decarbonised electricity system with maintaining competitive energy costs for industries operating within the bloc.

(With inputs from agencies.)