Temporary extension of government support by means of reduced energy tax

Published: 24 March 2022 at 15.20

Updated: 24 March 2022 at 15.46

One starting point in the EU state aid rules is that state aid may not be given to companies experiencing difficulties. The current proposal from the Government states that companies that have found themselves in financial difficulties during the period 1 March 2020 – 31 December 2021 as a result of the COVID-19 pandemic should be able to receive state support in the form of reduced energy tax. The Riksdag has voted in favour of the Government's proposal.

The decision is an extension of a previous law that applied for the period 1 March 2020 – 31 July 2020 which was made possible as a result of the fact that the EU rules applying to state support were changed as a consequence of the pandemic. A company that has been declared bankrupt cannot receive the support.

The amendments will come into force on 1 July 2022. The Riksdag has rejected one proposal contained in a motion.