Cabinet may pay substantial part of small business owners’ energy bills

The Cabinet is considering paying for half of the increased energy costs for at least some small and medium-sized companies. The plan could target those smaller businesses which use a relatively high amount of energy, sources confirmed after an initial report from the Telegraaf.

The idea on the table is for those companies who spend at least 12.5 percent of their revenue on energy as being energy-intensive firms. Only those businesses would be eligible for compensation. They also must use at least 5,000 cubic meters of gas annually, or 50,000 kilowatt hours of electricity, NOS reported. The businesses must have no more than 250 employees.

The support package will mainly concern relatively large consumers of energy such as bakers, butchers and horticulturists. Quite a few of these companies have found themselves in financial distress due to the sharply higher energy costs in recent months.

There will be a maximum amount of compensation per company, possibly about 160,000 euros. In total, the support package would amount to between 2.5 and 3 billion euros. Additionally, state-backed loans may be made available before the support package launches in the spring. It will last for at least a year, NOS reported. Eligible businesses may also be able to defer their taxes similar to the coronavirus financial support programs.

The exact terms and conditions are still being finalized. The sources said on Thursday the Cabinet is still discussing the details. More may be announced on Friday. The Cabinet has been working on a support package for small and mid-sized businesses for several weeks.