(Finance) – The European Commission has approved the Germany’s 1.1 billion euro plan to compensate rail transport operators using electric traction in the context of the recent increase in electricity prices. This is what the EU executive says in a note. The measure will help ensure that the rail sector remains competitive while preserving the environmental performance of electric railways, in line with the objectives of the Commission’s strategy for sustainable and smart mobility and the European Green Deal.
The help will take the form of monthly reductions in the electricity bills of rail freight and passenger transport operators. Electricity suppliers will therefore only be reimbursed by the German state for the economic support provided to rail transport operators. The scheme will cover electricity consumed between 1 January 2023 and 31 December 2023.
“This 1.1 billion euro plan – said the executive vice president of the European Commission, Margrethe Vestager – will allow Germany to support electric traction which is a more environmentally sustainable mode of transport. It will help Germany achieve its goals under the European Green Deal while reducing the rising electricity costs for transport operators and benefiting passengers.”