Finnish authorities propose to allocate €10 billion to support energy companies

The Finnish government has proposed to allocate an anti-crisis package of €10 billion to energy companies, and on September 5 the country’s parliament will consider the measure.

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According to the government’s plan, support will be expressed in the provision of loans and guarantees from this amount by the state to energy companies if they face insolvency.

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Politicians emphasized that this is not a subsidy, but a loan on market terms. The purpose of the measure is to prepare in advance for possible financial problems in the energy market and to minimize price fluctuations.

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Only companies without which the market will not function will be able to claim such support, that is, they must either produce more than 100 MWh or otherwise be critical to the energy supply of society. Companies will be able to apply for this loan until 2023, and will receive funds for two years.

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Finance Minister Annika Saariko emphasized that companies should resort to this tool as a last resort. It expressed the hope that such a practice would not have to be applied at all.