Government Decision for the implementation of a state aid scheme regarding the exemption of certain final consumer categories from the application of Law no. 220/2008 for establishing the system to promote the production of energy from renewable energy sources (Government Decision no 495 / 11 June 2014, published in the Official Gazette no. 500 on 4 July 2014)

The Government Decision introduces a new state aid scheme applicable to certain legal entities, electro-intensive industrial consumers, which perform activities in sectors exposed to the risk of losing the competitiveness due to the financial support granted to energy from renewable energy sources.

The beneficiaries of the new state aid scheme are Romanian legal entities which meet certain eligibility criteria, out of which:

• the main activity, or a secondary one, corresponds to a NACE code provided in the Guidelines on State aid for environmental protection and energy 2014-2020; 
• ensure the performance of the energy audit activity;
• for duration of the scheme they maintain the business in Romania and the possible layoffs do not exceed 25% of the number of employees at the time of qualification in the support scheme

The state aid consists in partial exemption from paying the amount related to green certificates. Upon issuance of an Exemption Agreement, the beneficiary shall notify its energy provider and ANRE. Therefore, in case of issuance of an Exemption Agreement, the beneficiaries, depending of the electro-intensity of the enterprise, will pay the following percentages of the green certificates related to the mandatory threshold:

• 15% - in case of electro-intensities higher than 20%;
• 40% - in case of electro-intensities ranging between 10-20%;
• 60% - in case of electro-intensities ranging between 5-10%.

The Government Decision enters into force starting with 1 August 2014, the state aid scheme being valid for a period of 10 years. The state aid scheme’s budget is of EUR 750 mn, estimated number of beneficiaries being 300.

For additional information, please contact:
Venkatesh Srinivasan, Partner – Head of Tax and Legal

Ernst & Young SRL and Radu si Asociatii SPRL
15-17 Ion Mihalache Blvd., Bucharest Tower Center Building, 22nd Floor  Sector 1, 011171, Bucharest, Romania
Tel: (40-21) 402 4000, Fax: (40-21) 310 7124
E-mail: office@ro.ey.com

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