What does the electricity subsidy mean for businesses?

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For companies, the electricity subsidy means that all traders and legal entities with an electricity tag in power range 3 and 4 can now apply for an electricity subsidy for last year's extraordinarily high electricity prices. The aid is intended to compensate for high electricity prices during the period from October 2021 to September 2022 and is provided at a fixed amount of pennies per kilowatt-hour consumed.

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The size of the electricity subsidy is determined by the size of the company's electricity consumption during the specified period. Those with power outlets in electricity zone 4 will receive SEK 0.79 per kWh consumed during the established period, while those in electricity zone 3 will receive SEK 0.50 per kWh consumed.

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The electricity subsidy is paid out of a pot of around SEK 30 billion and the maximum amount a company can receive in electricity subsidies amounts to SEK 20 million. The total pot comes from so-called bottleneck fees received by Svenska Kraftverket as a result of the high electricity prices and the large price differences between southern and northern Sweden.

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The basic condition for being eligible for electricity aid as a company is that:

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• The company has had electrical outlets in electrical range 3 or 4. Companies in electricity zone 1 or 2 are not eligible for electricity subsidies.
• The company has had a valid power grid agreement in power zone 3 or 4 on November 17, 2022. Companies that signed contracts after November 17, 2022 will not receive any electricity subsidy for that electrical outlet point.
• Companies have not special liabilities at Kronfogden.
• The company has not had a fixed price agreement for its entire electricity consumption which entered into force before 24 February 2022 and was valid at the same fixed price after 24 February 2023.

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How to apply for electricity subsidies to companies?

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Unlike the electricity subsidy for private individuals, companies and legal entities need to apply for an electricity subsidy, and this is done via the Swedish Tax Agency's website. The application opened May 30 and will be open until September 25, 2023.

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What information is needed in the application for electricity aid for companies?

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In order to apply for electricity subsidies and receive payment from the Swedish Tax Agency, the company must have a tax account and have registered a recipient account for automatic payment, which you can do in the e-service Skattekonto. In addition, all data must be filled in correctly. On the Swedish Tax Agency's website you can read about which data is required more precisely.

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When is the payment of the electricity subsidy to companies?

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The payment of electricity subsidies to companies will be made as soon as possible. The ambition According to the Tax Agency itself is that the money must be paid within a few days after the application has been submitted, provided that the application has been submitted via their web service and is complete. In other words, if you are quick on the puck, it means that companies could see their electricity subsidies as early as June.

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It should also be borne in mind that if the company in question has tax debts or other debts to the state or municipality, these will be paid off first. What is left over after the tax debts have been paid off is what the company will then receive in its registered beneficiary account. It is also worth noting that in some cases companies do not receive a surplus payment, for example if there is a decision that the company in question must pay additional tax and the due date has not yet been reached.

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How should companies account for the electricity subsidy?

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The electricity subsidy for companies is normally regarded as revenue and must therefore be included in the income tax return as a nutrition subsidy once the Swedish Tax Agency has made a decision on the aid. This means that the aid can be reported in annual accounts relating to financial years ending in 2023 if the Swedish Tax Agency has decided on the aid no later than the balance sheet date.

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In the case of undertakings engaged in taxable activities, the aid shall be taken up to the extent to which the activity is taxable. If the undertaking carries out activities which are entirely exempt from taxation, the aid shall not be taken into account.

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Exactly how the electricity subsidy is to be accounted for depends on the regulatory framework applied by the company:

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• An individual trader who draws up simplified annual accounts K1 presents its electricity subsidy as revenue in the simplified annual accounts for 2023.

• For companies that apply K2 or undertakings which draw up annual accounts, the aid does not need to be accrued.

• For companies that apply K3 gonna The aid is not accrued.

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For a more detailed description of how the electricity subsidy is to be accounted for, we recommend The website of the Accounting Board for questions and answers on electricity subsidies.

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At the same time, it is also important to consider that the rules and requirements on how the fire aid is to be accounted for and accounted for may vary depending on the specific circumstances of the company and the legislation in question. Therefore, we strongly recommend consulting with an accounting consultant or tax expert to ensure that the accounting will be accurate based on the unique situation of your company.

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Frequently asked questions about electricity subsidies to businesses:

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When can you apply for an electricity subsidy as a business?‍

Companies can apply for electricity subsidies from 30 May to 25 September 2023.

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Which companies can apply for electricity subsidies?

All undertakings, regardless of their form of business, may apply for electricity subsidies, as long as they meet the requirements for eligibility for electricity aid.

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Electricity support for business groups - what is it for?

Interest communities such as groups can apply for electricity aid, but then the application must be submitted jointly by the undertakings which are part of the interest community. This means that the companies in the group together can receive 20 million, and not each company individually.

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When is the deadline for applications for electricity subsidies for companies?

The last day for companies to apply for electricity subsidies is 25 September 2023.

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How much can companies receive in electricity subsidies?

Companies can receive a maximum of SEK 20 million in electricity subsidies. Companies with electrical outlets in electricity zone 4 receive SEK 0.79 per kWh consumed during the period October 2021 - September 2022, while companies in electricity zone 3 receive SEK 0.50 per kWh consumed

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Can housing associations get electricity subsidies?

Housing associations can receive electricity subsidies and, just like companies, submit an application via the Tax Agency's e-service.

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Can an individual company get electricity subsidies?

Individual companies, like other forms of business, can receive electricity subsidies. On the other hand, it is important for individual undertakings to divide the electricity aid relating to private consumption and consumption in the course of business activities, since the latter part is subject to taxation and is to be dealt with in accordance with the rules on nutrition subsidies.

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