Europe approves €1.4 billion Dutch scheme to help small businesses pay energy bills

The European Commission has approved the Dutch Cabinet’s 1.4 billion euro plan to compensate small and medium-sized businesses for the higher energy costs they face since the Russian invasion of Ukraine. These are energy-intensive companies in various sectors with purchases of natural gas and electricity that amount to at least 7 percent of their annual turnover for 2022.

The small and mid-sized businesses involved will be entitled to assistance amounting to 50 percent of the costs, with a maximum of 160,000 euros, the European Union’s executive body said. Credit institutions and other financial institutions are excluded from the scheme, according to the Commission.

Brussels considers the Energy Cost Allowance (TEK) “necessary, appropriate and proportionate” and approved the scheme under the relaxed State aid rules that the European Union temporarily has in place. The support must be given December 31, 2023.

The TEK scheme was already open to entrepreneurs starting on March 21. They can apply for compensation up to and including the close of business on October 2 at 5 p.m. The application is submitted to the Netherlands Enterprise Agency (RVO), and has retroactive effect from November 1, 2022.

Hospitality companies such as restaurants, ice cream parlors and cafes in particular will likely rely on the scheme, according to the RVO. Football clubs with outdoor pitches and bread and pastry shops are also in the top five of organizations asking for assistance.