Bakers, saunas, garden centers and other energy-intensive businesses receive compensation of up to 160,000 euros for their high energy costs. They must spend at least 12.5% ​​of their turnover on their energy costs. They also get half of their increased energy costs above a threshold price set by the cabinet.

Those are the key parts of the final Energy Cost Subsidy (TEK) scheme, which was already largely leaked as of Thursday night. With this regulation, the cabinet hopes to provide small and medium-sized companies, so-called SMEs, with sufficient help in the energy crisis. The cost of this TEK can be around 3.1 billion euros.

The cabinet set the threshold price (1.19 euros per cubic meter of gas and 0.35 cents per kilowatt hour of electricity) in order to exclude entrepreneurs with a long-term and relatively cheap energy contract from the subsidy. Therefore, only entrepreneurs with a contract above this threshold can receive money from the government.

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Economics Minister Adriaansens emphasizes that the targeted compensation was chosen for companies that are healthy in principle, but consume a lot of gas and electricity because of their product. “The cabinet will take on part of the accumulated bill,” said Adriaansens.

“Not every SME can raise its prices enough to cover energy costs and maintain sufficient sales.” Adriaansens gives a baker as an example. “They could use a helping hand. It’s a vulnerable group.”

The government has been working on a special regulation for SMEs for a few weeks. It turns out to be quite complicated to find a suitable solution for all these different types of companies. The regulations of the European Commission must not constitute state aid either.

Compensation for households was already announced at the beginning of October: a price cap will be introduced from January 1st, and in November and December all consumers will receive compensation of 190 euros per month.

The government assumes that it will take until the second quarter of 2023 for the support package for SMEs to be introduced. The European Commission has yet to approve the new system and the system has yet to be worked out.

In the meantime, when winter is just around the corner, there is a kind of bridging period. The cabinet says the Treasury and Customs Administration will be “lenient” with entrepreneurs who run into financial difficulties. Banks are also becoming more flexible with such companies.

State Secretary Van Rij from the Tax and Customs Administration emphasizes that a specific and limited regulation has been explicitly chosen. “We have to get rid of the idea that the government is always ready. Not everyone will be happy.”