Companies are demanding compensation for high electricity prices
Large industrial firms are demanding compensation for high electricity prices that have been growing recently amid a rising price for emission allowances. The government had already agreed to provide €40m this year and €80m annually starting in 2020, but the companies are demanding €200m annually. They also want the entire revenue from selling excessive emission quotas to be used for subsidies for their ’green’ projects. At present, about €58m annually goes towards the projects, but companies demand €150m annually. Further subsidies will emerge in 2021, via the so-called modernization fund. The fund will get revenues from the sale of emission quotas, up to €500m. The companies warn they will be forced to axe jobs if the economic slowdown in Western Europe and high power prices push them into the red. They are backed by the Economy Ministry, but the Finance Ministry is trying to limit the funding. Talks on the support continue.