This temporary mechanism allows member states to grant financial aid in various forms, to compensate companies, especially those that consume a large amount of energy and are affected by high gas and electricity prices.
It was originally scheduled to expire on December 31, 2023.
“Member states may not continue to provide support by covering part of the additional costs, unless energy prices significantly exceed pre-crisis levels,” the Commission said in a statement.
Brussels strictly regulates public support for companies to limit competition and protect the single market. But these restrictions were temporarily eased due to the war in Ukraine, which caused turmoil in energy markets.
The Commission stressed that although the situation has stabilized since last year, geopolitical tensions still pose risks to supply and “energy markets remain unstable.”
#Europe #extends #system #companies #cope #rising #energy #prices