News TEK Control
More chance of energy support by removing the threshold
The consumption threshold to qualify as an SME for the Energy Cost Contribution scheme (TEK) will be abolished. Minister Micky Adriaansens of Economic Affairs said this last night (November 10) in the House of Representatives. This offers more opportunities for agricultural entrepreneurs to qualify. From calculations by Boerenbusiness it turned out that the consumption of an average arable farmer and dairy farmer was below the consumption threshold of 5.000 m³ of gas or 50.000 KWh of electricity.
Earlier in the day, it was also announced yesterday that the scheme will be fully open to agricultural and horticultural companies. Like other energy-intensive companies, they will receive a maximum of €160.000 (instead of €62.000, which was previously intended) if they qualify. To be considered energy-intensive, the gas and electricity costs together must amount to at least 7% of the turnover. That was 12,5%, but the percentage has been adjusted this week. LTO also argued in favor of further reducing this percentage to 6,25%.
A first rough inventory of Boerenbusiness shows that some agricultural entrepreneurs will (just) fall under the scheme and others will not. The TEK scheme is currently based on a market price for gas of €2,42/m³ and €0,58/kWh for electricity. Please note: the price used to calculate is subject to change. The consumption from a gas tank, as many agricultural companies have, does not (for the time being) count as energy costs in the TEK.
Boerenbusiness did the calculations on the basis of Agrimatie from Wageningen Economic Research. The most recent figures for both average turnover and energy consumption come from 2020, so we are assuming that. It is quite possible that the numbers for 2022 deviate from this, but it already gives a first impression.
Pig farming amply meets percentage requirement
We looked at three sectors: dairy farming, pig farming and arable farming. What is striking is that an average pig farm, based on turnover and energy consumption in 2020, based on the market price that is currently being calculated, amply meets the (new) percentage requirement of 7%, with 10,15%. The dairy and arable sectors are just below this with 6,75% and 6,41% respectively.
Arable farming did not meet the consumption threshold in 2020 with an average consumption of 300 m³ of gas and 33.400 KWh (purchased) electricity, as did dairy farmers (1.100 m³ and 44.000 KWh). But that threshold has now been removed. An average pig farm did meet the expired consumption threshold in 2020 with 9.200 m³ of gas and 158.700 KWh of electricity.
The energy subsidy is 50% of the cost increase in energy consumption above €1,19/m³ for gas and €0,35/kWh for electricity (threshold price). The annual subsidy amount for an average company that meets the percentage requirement would therefore be €5.737 for dairy farming, €23.909 for pig farming and €4.026 for an arable farm.
If the energy consumption of many companies has remained approximately the same or has become lower, but the turnover has increased compared to 2020 (think of the high milk and potato prices), many companies will not achieve the percentage of 7% energy costs of the turnover and many agricultural entrepreneurs still fall by the wayside.
Linda van Eekeres
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