Government ups support for gas-intensive industries to €2M or €5M

  • Lusa
  • 5 January 2023

On 13 October, the government approved the decree-law that makes the European Commission's authorisation for reinforcing support for gas-intensive industries operational.

Portugal’s government approved additional support for gas-intensive industries on Thursday, increasing the amount to up to €2 million, for high increases in the purchase of natural gas, and up to €5 million, for companies with operating losses.

According to the statement sent out after today’s cabinet meeting, “the creation of additional support under the ‘Support for Gas-Intensive Industries’ incentive scheme was approved, allowing for support of up to €2 million of €5 million, respectively, in the case of exceptional and exceptionally high increases in the costs of purchasing natural gas and in the case of energy-intensive companies with operating losses.

On 13 October, the government approved the decree-law that makes the European Commission’s authorisation for reinforcing support for gas-intensive industries operational, increasing the maximum limit of support and extending it to the agri-food transformation industry sector.

At stake is the measure ‘Support for Gas-Intensive Industries’, with the minister of the presidency, Mariana Vieira da Silva, stating that the law incorporates the European Commission’s statement (on issues related to competition), “which has arrived”.

The cabinet statement sent at the time detailed that the draft law would implement support measures for companies in the face of rising energy prices, including increasing the maximum limit of support allocated under the ‘Support for Gas-Intensive Industries’ incentive scheme, as well as “increasing the respective support rate, with retroactive effect.

On 6 October, the European Commission approved the reinforcement of the support to gas-intensive industries to 40% of the eligible cost, allowing the increase of the support limit from €400,000 to €500,000 and the extension to the agro-food processing industry.

According to the ministry for economy and maritime affairs, the total amount of support increased from €160 million to €190 million retroactively to applications already submitted and decided.