A €5 billion (£4.3bn) Czech scheme to support large energy producers in the context of Russia’s war against Ukraine has been approved by the European Commission.
Under the measure, subsidised loans will be provided to large energy producers to meet the collateral requests in the energy trading markets, with the final aim of supporting the functioning of the markets and the supply of energy to the economy.
It will partially compensate the companies for additional costs due to the “exceptional” gas and electricity price increases.
The Commission found the scheme to be “necessary, appropriate and proportionate to remedy a serious disturbance” in the economy of the member state.
Margrethe Vestager, Executive Vice-President in charge of competition policy said: “This €5 billion scheme enable Czechia to provide liquidity support to energy producers, allowing them to meet the collateral requests in the energy trading markets and ensuring energy supply.”
