Support Measures for Companies to Cushion High Energy Costs

This paper analyses options for relieving companies with regard to the current high energy prices. Support measures should be limited to companies that cannot pass on their costs due to international competition. A coordinated approach at EU level would in principle be preferable to individual national solutions. With the specific design of the energy cost subsidy for companies, the Austrian federal government has opted for a broad subsidy regime with high deadweight losses, instead of targeted support. A general loss carryback combined with liquidity support (guarantees) would have been economically more efficient and ecologically more sustainable.