The reason for this is the narrowly defined and sometimes surprising rules in the law, which from the point of view of the economy also contain technical errors. The Cologne-based auditing and tax consultancy firm AHW Hunold & Partner has checked possible claims for a good 1000 of its clients – with astonishing results.
A total of 45 companies were shortlisted, none of which turned out to be eligible to apply, reports Klaus Esch, partner at AHW. So far, he has rated the EKDP as a “placebo program that doesn’t help anyone in practice”.
The federal government announced the start of the EKDP for energy-intensive industry in mid-July. Eligible companies can receive a subsidy of up to 50 million euros for their increased natural gas and electricity costs until August 31, 2022.
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The requirements included a certain energy and trade intensity. The program also provides for a strict waiver of bonuses for senior management.
Funding program apparently excludes many small companies
From AHW Hunold’s point of view, the funding conditions are so narrow in detail that they are practically unfulfillable for many. The submission of an audited annual financial statement is mandatory, which is why most smaller companies are directly excluded from the subsidy.
The companies must also prove the transfer of electricity or gas costs with a bank statement showing the tax number of the applicant. But: “No company gives their own tax number for such transfers,” says tax consultant Esch.
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The applicable time periods are also critical. So there is support when energy costs have doubled compared to 2021. The period is February to September 2022.
However, most companies buy energy in the medium term. They will only experience cost increases later, i.e. after September 2022. As a result, they receive nothing even though they meet the other requirements.
Gernot Engel, energy law expert at the Luther law firm, considers it essential to extend the aid: “It is obvious that the first step in the support program must also be extended to the months of October to December,” he said.
Habeck is working on an extension
The federal government sees it that way too. The framework allowed by the EU Commission until the beginning of September is not sufficient from the point of view of Federal Minister of Economics Robert Habeck (Greens). In government circles it was said on Wednesday that an extension was being worked on. Details are expected to be announced later this week.
The complicated version of the program is also due to the specifications of the EU Commission, which wants to prevent market distortions through excessive state aid and has to approve concrete steps.
Engels is convinced that the federal government is going beyond the conditions of the EU Commission when it comes to the EKDP. The federal government has defined the group of companies eligible for funding more narrowly than the EU Commission prescribes.
From the outset, the program excludes numerous sectors of the economy from the subsidy pot, although the companies are affected by the exploding energy prices to the same extent as those who have benefited from the subsidy. “This can lead to distortions of competition that threaten our very existence,” said Engel.
Several sectors of the economy are excluded from funding.
(Photo: dpa)
Frustration spreads in the affected companies, because in individual cases it is not clear why the subsidy is not granted. Johannes Wienands, head of the Aachen mechanical engineering company Schumag, had exactly this experience: “Our company does not benefit from the energy cost containment program. Other companies with the same energy cost intensity, on the other hand, do benefit from the aid. We don’t understand why this is the case,” said Wienands.
Chemical park operators are left out
Chemical companies located in the numerous German chemical parks are surprised or horrified by the funding conditions. These are industrial complexes in which manufacturers share energy supplies and other services. The largest chemical parks are in Leverkusen, in the Höchst district of Frankfurt and in Leuna in eastern Germany.
The parks are operated by companies such as Currenta and Infraleuna. As service providers, they are major consumers of energy, which they use to produce process steam and compressed air in power plants for local companies. However, as service providers, they do not belong to the beneficiary group and cannot apply for a subsidy under the EKDP themselves.
The chemical companies in the parks, on the other hand, can do this – in theory. However, they must prove energy procurement costs of at least three percent of the production value. However, most companies do not reach this threshold: process steam, compressed air and recooling water from the operating power plants are not taken into account in the EKDP.
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