Bold measures to ensure SMEs' access to energy at affordable prices

08 September 2022
by smeunited -- last modified 08 September 2022

SMEunited, ahead of the meeting of EU Energy Ministers recalls that more and more SMEs are at risk of collapse due to the rising energy costs. The organisation calls on the EU & its Member States to ensure SMEs' access to energy at affordable prices and to use all possible means to increase energy supply.

Even if many SMEs are still profiting from fixed-price energy contracts, these agreements are gradually coming to an end. Many member organisations from SMEunited already indicate that a growing number of SMEs face the impact of the energy crisis and increasingly fall victim to huge price increases (up to 200-500%). These entrepreneurs have to decide whether to continue working at a loss or halting activities.

Member States in certain cases have taken measures, amongst others liquidity support, for SMEs based on the State aid Crisis Framework. We call on Member States who haven't done so to assess needs and put in place appropriate measures as well. Moreover, these are not enough to ensure the survival of SMEs mostly hit by rising energy prices.

For this reason, SMEunited and its national SME organisations ask for bold measures at national and European level to ensure SMEs' access to energy at affordable prices, while encouraging energy efficiency, saving energy measures and transition to renewables.

One option that is also considered in some Member States could be to provide SMEs and households with electricity and gas at pre-war prices for 80% of their consumption in 2021. For the remaining consumption, the market prices have to be paid, providing an incentive to improve energy efficiency and save energy. This model requires a specific solution for new companies with no consumption history. Such a support measure could be financed by price caps for non-marginal energy producers or by taxing windfall profits.

SMEunited also supports other options, such as group purchase of gas, reducing levies and taxes to minimum levels and reducing energy (gas and electricity) consumption. At the same time, SMEunited has concerns about overall price regulation and any interference in the wholesale market.

To support SMEs on their path to efficient energy use and energy transition, SME organisations at national level must dispose of the adapted capacity to provide guidance to their members.

SMEunited is the association of Crafts and SMEs in Europe with around 70 member organisations from over 30 European countries. SMEunited represents national cross-sectoral Craft and SME federations, European SME branch organisations and associate members. Combined, they represent more than 12 million enterprises with around 55 million employees across Europe. SMEunited is also a recognised employers' organisation and European Social Partner. SMEunited was formally known as UEAPME.

SMEunited