The amended law of 15 July 2022 introducing an aid scheme for businesses severely affected by the increase in energy prices arising as a result of Russia's aggression against Ukraine has entered into force.

It provides for 3 types of aid intended to cover:

1. the extra costs for natural gas, electricity, heat and cooling incurred by energy-intensive businesses or high energy-consuming businesses;
2. the extra costs for diesel fuel for businesses in the road freight transport, building and artisanal food production sectors;
3. the extra costs for natural gas, electricity, biomass and injected heat for applicants who operate a heat production facility, a biogas production facility or a heating network.

The online assistant for aid applications is available on MyGuichet.lu.

You can find answers to the most frequently asked questions in the FAQ section.

Who is concerned

Eligible businesses

The following businesses are eligible for the 1^st type of aid:

• energy-intensive businesses whose energy costs accounted for 1.5 % of their turnover in 2021; or
• high energy-consuming businesses whose energy costs accounted for 3 % of their turnover in 2021.

The 2^nd type of aid is intended for businesses:

• in the road freight transport, building and artisanal food production sectors;
• that are highly dependent on fuels for transport and delivery;
• that have incurred operating losses (EBITDA < 0) in the month for which the aid application is made.

The 3^rd type of aid is intended for applicants who operate a heat production facility, a biogas production facility or a heating network and:

• that, due to regulatory or contractual obligations, are unable to fully or partially pass on to their customers their cost increases for:
  • natural gas, electricity or biomass incurred for heat production;
  • electricity or biomass incurred for biogas production; or
    
  • heat injected into a heating network; and
    

• whose EBITDA:
  • is negative in the month in question falling within the eligible period; or
    
  • declined by at least 30 % compared to the average monthly EBITDA in 2021.

Excluded sectors and aid measures

Businesses that are excluded from the 1^st and 2^nd types of aid are those that:

• do not possess a business permit;
• are the subject of collective insolvency proceedings brought under the national law applicable to them;
• are the subject of an outstanding recovery order further to a previous decision by the European Commission specifying that an aid payment granted by Luxembourg is illegal and incompatible with the internal market;
• are not end users of energy.

Applicants who are excluded from the ³rd type of aid are those who:

• are the subject of collective insolvency proceedings brought under the national law applicable to them;
• are the subject of an outstanding recovery order further to a previous decision by the European Commission specifying that an aid payment granted by Luxembourg is illegal and incompatible with the internal market.

Excluded persons

Businesses that are the subject of restrictive measures adopted by the European Union (EU), including:

• the persons, entities or organisations that are specifically mentioned in the legal instruments implementing such restrictive measures;
• businesses that are held or controlled by the persons, entities or organisations to which/whom the EU's restrictive measures apply;
• businesses in the sectors to which the EU's restrictive measures apply, insofar as the aid would defeat the purpose of the restrictive measures.

Employers who have been convicted:

• 2 or more times for infringements of provisions prohibiting:
  • illegal labour; or
    
  • employment of non-EU illegal residents; and
• within the 4 years preceding the competent court's decision.

Employers in this case are ineligible for this aid for 3 years from the date of the decision in question.

Eligible costs

First type of aid

Cost eligibility period: February 2022–August 2022

Any monthly extra costs for natural gas and electricity incurred by the business, when such costs are more than double the average unit costs of natural gas and electricity incurred by the business during the reference period.

The eligible costs are calculated for each month falling within the eligible period for which the aid is being requested, using the following formula:

(p(t) – p(ref) × 2) × q(t)

where:

• p(t) is the unit price of natural gas and electricity, in EUR/MWh, incurred by the business in the month in question falling within the eligible period;
• p(ref) is the average unit price of natural gas and electricity, in EUR/MWh, incurred by the business during the reference period (the entire year 2021);
• q(t) is the amount of natural gas and electricity used by the business in the month in question falling within the eligible period.

Cost eligibility period: September 2022–December 2022

Any monthly extra costs for natural gas and electricity incurred by the business, when such costs are more than double the average unit costs of natural gas and electricity incurred by the business during the reference period.

To calculate the eligible costs, the amount of natural gas and electricity used by the business taken into account is capped at 70 % of the business's use in the corresponding month of the reference period.

(p(t) – p(ref) x 2) x min[ q(t); 0.7 x q(ref) ]

where:

• p(t) is the unit price of natural gas and electricity, in EUR/MWh, incurred by the business in the month in question falling within the eligible period;
• p(ref) is the average unit price of natural gas and electricity, in EUR/MWh, incurred by the business during the reference period (the entire year 2021);
• q(t) is the amount of natural gas and electricity used by the business in the month in question falling within the eligible period;
• q(ref) is the amount used by the business in the 2021 reference month (the same month as the month in question falling within the eligible period).

Cost eligibility period: January 2023–June 2023

Any monthly extra costs for natural gas, electricity, heat and cooling incurred by the business that exceed 50 % of the average unit costs incurred by the business during the reference period.

To calculate the eligible costs, the amount used by the business taken into account is capped at 70 % of the business's use in the corresponding month of the reference period.

(p(t) – p(ref) x 1.5) x min[ q(t); 0.7 x q(ref) ]

where:

• p(t) is the unit price of natural gas, electricity, heat and cooling, in EUR/MWh, incurred by the business in the month in question falling within the eligible period;
• p(ref) is the average unit price of natural gas, electricity, heat and cooling, in EUR/MWh, incurred by the business during the reference period (the entire year 2021);
• q(t) is the amount of natural gas, electricity, heat and cooling used by the business in the month in question falling within the eligible period;
• q(ref) is the amount used by the business in the 2021 reference month (the same month as the month in question falling within the eligible period).

Second type of aid

Cost eligibility period: February 2022–June 2023

Any monthly extra costs for diesel fuel incurred by the business, when such costs are 25 % higher than the average unit costs of diesel fuel incurred by the business during the reference period.

The eligible costs are calculated for each month falling within the eligible period for which the aid is being requested, using the following formula:

(p(t) – p(ref) × 1.25) × q(t)

where:

• p(t) is the unit price of diesel fuel, in EUR/litre, incurred by the business in the month in question falling within the eligible period;
• p(ref) is the average unit price of diesel fuel, in EUR/litre, incurred by the business during the reference period;
• q(t) is the amount of diesel fuel used by the business in the month in question falling within the eligible period.

Third type of aid

Cost eligibility period: January 2023–June 2023

Extra costs are the eligible costs that are 80 % higher than the average unit costs incurred by the business during the reference period. Costs that are eligible for the financial aid are:

• for applicants that operate a heat production facility: extra costs for natural gas, electricity and biomass incurred to produce heat;
• for applicants that operate a biogas production facility: extra costs for electricity and biomass incurred to produce biogas;
• for applicants that operate a heating network: extra costs for heat injected into the heating network.

To calculate the eligible costs, the amount used by the business taken into account is capped at 100 % of the business's use in the corresponding month of the reference period.

(p(t) – p(ref) x 1.8) x min[ q(t) ; q(ref) ]

where:

• p(t) is, depending on the case:
  
  1. the unit price of natural gas, electricity or biomass incurred by the applicant to produce heat in the month in question falling within the eligible period; or
  2. the unit price of electricity or biomass incurred by the applicant to produce biogas in the month in question falling within the eligible period; or
  3. the unit price for heat incurred by the applicant for injection into their heating network in the month in question falling within the eligible period.
• p(ref) is, depending on the case:
  
  1. the average unit price of natural gas, electricity or biomass incurred by the applicant to produce heat during the reference period; or
  2. the average unit price of electricity or biomass incurred by the applicant to produce biogas during the reference period; or
  3. the average unit price of heat incurred by the applicant for injection into their heating network during the reference period.
• q(t) is, depending on the case:
  
  1. the amount of natural gas, electricity or biomass used by the applicant to produce heat in the month in question falling within the eligible period; or
  2. the amount of electricity or biomass used by the applicant to produce biogas in the month in question falling within the eligible period; or
  3. the amount of heat purchased by the applicant for injection into their heating network in the month in question falling within the eligible period.
• q(ref) is, depending on the case:
  
  1. the amount of natural gas, electricity or biomass used by the applicant to produce heat in the 2021 reference month (the same month as the month in question falling within the eligible period); or
  2. the amount of electricity or biomass used by the applicant to produce biogas in the 2021 reference month (the same month as the month in question falling within the eligible period); or
  3. the amount of heat purchased by the applicant for injection into their heating network in the 2021 reference month (the same month as the month in question falling within the eligible period).

Deadlines

The application for aid must be filed for each eligible month by the following deadlines:

• by 31 March 2023 at the latest for all eligible months in 2022;
• by 30 September 2023 at the latest for all eligible months in 2023.

How to proceed

Submitting the application

The application for aid must be filed for each eligible month using the online assistant available on MyGuichet.lu, and by the following deadlines:

• by 31 March 2023 at the latest for all eligible months in 2022;
• by 30 September 2023 at the latest for all eligible months in 2023.

The person filing the application (the applicant or their representative) will need:

• a LuxTrust product (e.g. Token, Smartcard or Signing Stick); or
• an electronic identity (eID) card.

How to create a business eSpace on MyGuichet.lu

Two scenarios are possible:

• the person filing the application is a new user on MyGuichet.lu and does not yet have a private eSpace:
  creating the eSpace involves 2 steps:
  1. registering the user;
  2. creating the business eSpace.

A tutorial in the form of a video or a PDF document is available to guide you.

• the person filing the application is a MyGuichet.lu user and already has a private eSpace: they will need to create a new business eSpace.

A tutorial in the form of a video or a PDF document is available to guide you.

You can also refer to the help section on MyGuichet.lu.

Supporting documents

The aid application file must include the following information and documents:

• the name of the business undertaking;
• the legal organisation chart and the size of the business, in accordance with Annex I of Regulation (EU) No. 651/2014 of the Commission of 17 June 2014 (GBER);
• when applying for the first time:
  • the annual financial statements for 2021, providing details on income and expenditure; and
  • the receipted invoices, depending on the case, for purchases of natural gas, electricity, heat, cooling, biomass, injected heat or diesel fuel for all of the months falling within the reference period;
• the receipted invoices, depending on the case, for purchases of natural gas, electricity, heat, cooling, biomass, injected heat or diesel fuel for the month in question falling within the eligible period;
• the amount of the monthly extra costs, depending on the case, of natural gas, electricity, heat, cooling, biomass, injected heat or diesel fuel for the month in question falling within the eligible period;
• the profit-and-loss account providing details of the income and expenditure in the month in question falling within the eligible period;
• the amount of aid being applied for;
• the bank account identification document (RIB);
• a declaration of honour that the business abides by the restrictive measures.

The application for aid must also include the following information and documents:

• when applying for the first type of aid for the first time:
  • the receipted invoices for purchases of energy products and electricity;
• where applicable, the amount of operating losses and the percentage of the operating losses that the eligible costs represent for each month of the eligible period;
• where applicable, the power of attorney signed by the person(s) authorised to bind the business and certifying that the declarant has the authority to submit the application;
• where applicable, the certificate showing the 'energy mix' of their energy supplier, specifying the percentage of heat and cooling produced by natural gas and/or electricity;
• where applicable, the sector or sub-sector in which the business operates, along with the relevant NACE code.

Maximum amount of financial aid

First type of aid

Cost eligibility period: February 2022–December 2022

The amount of the aid is calculated based on the project's eligible costs. If the applicant can be defined as a high energy-consuming business, the maximum aid intensity for each project may not exceed:

• 30 % of the eligible costs, or up to EUR 2,000,000 per group, for the eligible period;
• 50 % of the eligible costs, or up to EUR 25,000,000 per group for the eligible period, provided that the eligible costs account for at least 50 % of the monthly operating losses (EBITDA < 0). The aid may not exceed 80 % of the operating losses (EBITDA < 0);
• 70 % of the eligible costs, or up to EUR 50,000,000 per group, for the eligible period, provided that:
  • the eligible costs account for at least 50 % of the monthly operating losses (EBITDA < 0); and
  • the sector or sub-sector in which the business operates is listed in Annex I of the temporary framework (e.g. iron and steel industry);
    
  • the aid may not exceed 80 % of the operating losses (EBITDA).

Cost eligibility period: January 2023–June 2023

The amount of the aid is calculated based on the project's eligible costs. The maximum amount of aid for each project may not exceed:

• if the applicant can be defined as an energy-intensive business:
  • 50 % of the eligible costs, or up to EUR 4,000,000 per group, for the eligible period;
  • 40 % of the eligible costs, or up to EUR 50,000,000 per group, for the eligible period, provided that the applicant's EBITDA in the month in question falling within the eligible period, including the aid, does not exceed 70% of the business's average monthly EBITDA in 2021 or 0 when the applicant's EBITDA was negative in 2021;
• if the applicant can be defined as an high energy-consuming business and their EBITDA is negative in the month in question falling within the eligible period, or it declined by at least 40 % in the month in question falling within the eligible period compared to the average monthly EBITDA in 2021:
  • 65 % of the eligible costs, or up to EUR 50,000,000 per group, for the eligible period, provided that the applicant's EBITDA in the month in question falling within the eligible period, including the aid, does not exceed 70% of their average monthly EBITDA in 2021 or 0 when the applicant's EBITDA was negative in 2021;
    
  • 80 % of the eligible costs, or up to EUR 75,000,000 per group, for the eligible period, provided that:
    • the applicant's EBITDA in the month in question falling within the eligible period, including the aid, does not exceed 70 % of their average monthly EBITDA in 2021 or 0 when the applicant's EBITDA was negative in 2021.
    • the sector or sub-sector in which the business operates is listed in Annex I of the temporary framework (e.g. iron and steel industry).

Second type of aid

If the eligible costs account for at least 50 % of the monthly operating losses (EBITDA < 0), the maximum aid intensity is 50 % of the eligible costs, provided that the amount does not exceed 80 % of the operating losses (EBITDA < 0). The total amount of aid for the eligible period may not exceed EUR 500,000 per group.

Third type of aid

The maximum aid intensity is 70 % of the eligible costs, and the total amount of the aid may not exceed EUR 2,000,000 per group.

Additional requirement for the first type of aid

For the January–June 2023 eligibility period, if the aid granted exceeds a total of EUR 50,000,000 per business, the applicant must file a plan with the Ministry of the Economy, within one year of the allocation of the aid, specifying how it intends to:

• reduce the carbon footprint of its energy consumption; or
• implement one of the following environmental protection or supply security requirements:
  • cover 30 % of the energy needs with renewable energies. For example, through electricity purchasing agreements or through direct investment in the production of energy from renewable sources;
  • invest in energy efficiency measures, and reduce energy consumption compared to economic production. For example, reduce consumption for production processes, heating or transport, in particular through measures that implement the recommendations listed in energy audits;
  • make investments aimed at reducing or diversifying the use of natural gas. For example, through electrification measures that use renewable energy sources or circular sources such as the reuse of residual gases;
  • make more flexible investments so the business can better adapt its processes to price signals on the electricity market.

Disclosure of the aid

Any aid granted exceeding EUR 100,000 must be published on the European Commission's transparency website. More specifically, and in this case, the granting authorities are required to publish the following information:

• the beneficiary's name;
• the beneficiary's VAT/business identification number;
• the company type (SME/large business) at the time of granting the financial aid (signature of the agreement);
• the beneficiary's region under NUTS II;
• NACELUX Rev. 2 group activity sector;
• the aid element, the amount of aid expressed in local currency;
• the aid instrument;
• the date on which the aid is granted;
• the purpose of the aid;
• the granting authority;
• the aid number.

Definition of an SME

Given the difficulties encountered by SMEs, such as access to capital or a lack of human resources, certain categories of aid under the GBER provide for an increase in the intensity of aid available to them.

To ascertain whether an applicant company qualifies for 'SME' status, the following should be checked:

Only one of the two criteria 'Annual turnover' and 'Annual balance sheet' need be satisfied. Consideration should be given to the number of staff and annual turnover/balance sheet not only of the applicant company, but also of any other economic entity with which the applicant company forms a 'single economic entity'.

Checks, sanctions, repayment and criminal law provisions

All aid grants are subject to checks for up to 10 years following their payment. Accordingly, recipient businesses are required to provide the Minster of the Economy's representatives with any documents and information they may need in order to carry out their checks, including the annual financial statements for 2022 providing details of the business's income and expenditure.

The business may be required to repay the aid, plus any applicable legal interest, when the conditions for such repayment are satisfied.

Forms / Online services

Who to contact