State aid: Commission approves €16.8 billion Danish guarantee scheme to support energy companies in the context of Russia’s war against Ukraine

The European Commission has approved a €16.8 billion (DKK 125 billion) Danish guarantee scheme to support companies in the context of Russia’s war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022, and amended on 20 July 2022 and on 28 October 2022. The measure will be open to electricity producers and gas shippers active in the Danish electricity and gas markets. Under the scheme, the guarantees relate to new loans and guarantees to cover the energy companies’ liquidity needs for posting collateral to central clearing houses (CCPs) and their maximum duration is 5 years. The maximum guarantee amount per company will cover the liquidity needs stemming from its activity on the energy markets for the 12 months following the granting of the aid. The Commission concluded that the Danish guarantee scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis Framework. On this basis, the Commission approved the aid measure under EU State aid rules. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €16.8 billion guarantee scheme will enable Denmark to provide liquidity support to energy companies for their collaterals with central clearing houses, allowing them to continue their activities.” A press release is available online.