The government will compensate companies electricity and natural gas providers for having to sell the energy at capped prices. The measure is worth between 340 and 350 million euro at the annual level.

The eligibility criteria are set down in two regulations that were adopted by the government on 12 January. The electricity market operator Borzen has been authorised to pay out the compensation.

"We are addressing the cost-of-living crisis and compensating the providers for the shortfall because they have to sell at capped prices, both electricity and natural gas," Infrastructure Minister Bojan Kumer said after the government session.

The prices of electricity and gas for households, small commercial consumers and some protected consumers such as hospitals were capped for a year in September 2022.

Since the start of this year gas and power prices have also been capped for public agencies, utilities and institutions and municipalities, and caps have been imposed on electricity supplied to micro, small and medium-sized companies, provided consumption does not exceed 90% of their past consumption.

The compensation scheme follows after a €1.2 billion aid scheme for the corporate sector came into effect on 1 January. It entails subsidies for high prices of electricity, gas and steam, a subsidy scheme for furlough and part-time work, and liquidity loans.