Changes Approved to Energy Cost Containment Program EKDP

The Energy Cost Containment Program EKDP aims to support German companies in coping with rising energy costs. After the aid program was impractical according to companies and economists, the German federal government has decided to make changes. According to government circles, the application period for the aid, which was originally supposed to expire on 31 August and has already been extended to 30 September, should be extended to the end of the year. The ministries are now considering the content of the aid program, which is apparently not working well, can be better reconciled. However, the instrument offers little help, criticize companies and economists. The program is impractical and creates incentives to use more instead of less energy. Companies are complaining that the restrictions on the aid are too strict. For example, a proportionate reimbursement of energy costs will only be granted if these costs are more than twice as high in the period from February to September 2022 as they were on average in 2021.The federal government announced the launch of the EKDP in mid-July. Eligible companies can receive a subsidy of up to 50 million euros to cover their increased natural gas and electricity costs. This should help the energy-intensive industry in particular. To date, around 2,500 companies have registered for the energy cost containment program.