Under EU State aid rules, the European Commission has approved a 1.1 billion EUR German scheme to compensate operators who are negatively impacted by the recent spike in electricity prices when powering electric trains.
This scheme will help rail operators cover part of the additional electricity cost in order to support the modal shift from road to electric rail.
The aid will be given in the form of monthly reductions from the rail transport operators’ electricity bills throughout 2023. Electricity suppliers will then be reimbursed by the German state.
Germany notified the European Commission of its intention to introduce this scheme, resulting in a thorough assessment that concluded on 24 February.
The Commission found that the scheme is beneficial for the environment and mobility and will not have negative effects on competition and trade in the EU.
“This €1.1 billion scheme will enable Germany to support electric traction, which is a more environmental-friendly mode of rail transport compared to diesel-fuelled vehicles. It will help Germany meet its European Green Deal objectives, while reducing the burden of rising electricity costs for transport operators, to the benefit of passengers and freight customers.”
