Legalize / European Union / Regulation

Commission Regulation (EC) No 794/2004 of 21 April 2004 implementing Council Regulation (EC)No 659/1999 laying down detailed rules for the application of Article 93 of the EC Treaty

Type Regulation

Publication 2004-04-30

Last updated 2025-08-13

State In force

Department European Commission

Source EUR-Lex

articles 15

Reform history JSON API

37.In order to verify the compliance with point 459(c) of the CEEAG, in case the aid scheme is not currently subject to an ex post evaluation, please provide below a commitment that the Member State will notify a draft evaluation plan within 30 working days after recording in official accounts expenditures in excess of EUR 150 million in the previous year.

38.In order to verify the compliance with point 461 of the CEEAG:

(a) Please clarify if the independent expert has already been selected or it will be selected in the future. …

(b) Please provide information on the selection procedure of the expert. …

39.In order to verify the compliance with point 461 of the CEEAG:

(a) Please provide your proposed deadlines for the submission of the interim and final evaluation report. Please note that final evaluation report must be submitted to the Commission in due time to allow for the assessment of the possible prolongation of the aid scheme and at the latest 9 months before its expiry, in line with point 463 of the CEEAG. Please note that that deadline could be reduced for schemes triggering the evaluation requirement in their last 2 years of implementation. …

(b) Please confirm that the interim and final evaluation report will be made public. Please provide the date and internet link where those reports will be publicly available. …

Section D: Reporting and monitoring

To provide the information in this section, please refer to Section 6 (points 464-465) of the CEEAG.

40.Please confirm that the Member State will comply with the requirements for reporting and monitoring provided in Section 6, points 464 and 465, of the CEEAG.

PART III.6.L

Supplementary information sheet for State aid granted under the Guidelines on State aid for climate, environmental protection and energy 2022 (hereafter ‘CEEAG’) - Section 4.10 – Aid to district heating and cooling

This supplementary information sheet concerns measures covered in Section 4.10 of the CEEAG. If the notification includes measures that are covered by more than one section of the CEEAG, please once available also fill in the respective supplementary information sheet that concerns the respective section of the CEEAG.

All documents provided by Member States as annexes to this supplementary information sheet must be numbered and document numbers must be indicated in the relevant sections of this supplementary information sheet.

Section A: Summary of the main characteristics of the notified measure(s)

1.Background and objective(s) of the notified measure(s).

1.1.If not already discussed under section 5.2 of the General Information Form (Part. I), please provide the background and the main objective, including any Union targets for reduction and removal of greenhouse gas emissions that the measure is intended to support.

1.2.Please indicate any other objectives pursued by the measure. For any objectives that are not purely environmental, please explain whether they may result in any distortions to the internal market.

2.Entry into force and duration:

2.1.To the extent not already provided under section 5.5 of the General Information Form (Part I), please indicate the date as of which the aid scheme is planned to enter into force;

2.2.Please indicate the duration of the scheme. (⁴⁸⁸)

3.Beneficiary(ies)

3.1.If not already provided under section 3 of the General Information Form (Part I), please describe the (potential) beneficiary(ies) of the measure(s).

3.2.Please indicate the location of the (potential) beneficiary(ies) (i.e. if only economic entities located in the respective Member States or also in other Member States are eligible to participate in the measure).

3.3.In order to assess the compliance with point 15 of the CEEAG, please specify if aid is granted under the measure(s) in favour of an undertaking (individual or part of a scheme) that is subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market.

In the affirmative, please provide information on the amount of aid still to be recovered so that the Commission takes account of it in the assessment of the aid measure(s).

4.Please confirm that the measure(s) does not involve aid to activities falling outside the scope of application of the CEEAG (see point 13 of the CEEAG). Otherwise, please provide details.

5.Budget and financing of the measure(s).

5.1.If not already mentioned in the table under section 7.1 of the General Information Form (Part I), please provide the yearly and/or total budget for the whole duration of the measure(s); if the total budget is not known (for instance because it depends on the results of tenders), please indicate an estimated budget, including the assumptions used to calculate the respective estimated budget. (⁴⁸⁹)

5.2.If the measure is financed through a levy, please clarify if:

(a) the levy is set by law or any other legislative act; in the affirmative, please provide the legal act, number and date when adopted and entered into force, the internet link to the legal act; …

(b) the levy is imposed equally on domestic and imported products; …

(d) the levy finances fully the measure or only partly. If the levy finances only partly the measure, indicate the other sources of financing of the measure and their respective proportion; …

(e) the levy financing the notified measure also finances other aid measures. If so, indicate the other aid measures financed by the concerned levy. …

Section B: Compatibility assessment of the aid

1.POSITIVE CONDITION: THE AID MUST FACILITATE THE DEVELOPMENT OF AN ECONOMIC ACTIVITY

1.1. Contribution to the development of an economic activity

To provide the information in this section, please refer to section 3.1.1 (points 23-25) and sections 4.10.1 and 4.10.2 (points 383-390) of the CEEAG.

6.Article 107(3), point (c), of the Treaty on the Functioning of the European Union (‘the Treaty’) provides that the Commission may declare compatible ‘aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest’. Therefore, compatible aid under that provision of the Treaty must contribute to the development of certain economic activity.

In order to assess the compliance with point 23 of the CEEAG, please identify the economic activities that will be facilitated as a result of the aid and how the development of those activities is supported.

7.In order to assess the compliance with point 25 of the CEEAG, please ‘describe if and how the aid will contribute to the achievement of objectives of Union climate policy, environmental policy and energy policy and more specifically, the expected benefits of the aid in terms of its material contribution to environmental protection, including climate change mitigation, or the efficient functioning of the internal energy market’.

8.In addition, please highlight to what extent the aid relates to policies described under points 383 and 384 CEEAG. By doing so, please also clarify whether the project promotes renewable energy in line with Article 2(1) of Directive 2018/2001/EU. Specifically, please confirm whether the measure develops efficient district heating and cooling systems within the meaning of Article 26 of Directive 2023/1791/EU to promote heating and cooling from renewable energy sources.

9.Points 385 and 386 of the CEEAG provide that support that is limited to district heating distribution networks can, under certain circumstances, be considered to fall outside of State aid control.

(a) Does the measure support district heating distribution networks which will be subject to third party access, unbundling (i.e. separation between generation and distribution of heating/cooling) and regulated tariffs?

(b) If the answer to point a) is Yes, please explain if the distribution network will be run under a legal and/or natural monopoly, with reference to the criteria laid down in points 374 and 375 of the CEEAG. …

10.Please provide information on the scope and supported activities of the aid measure(s), as provided in section 4.10.2. (points 388-389) of the CEEAG. By doing so, please also:

(a) Explain why the project falls within the definition of district heating/cooling under point 19(27) of the CEEAG and within the definition of district heating and/or a district cooling system under point 19(28) of the CEEAG.

(b) Explain if the project supports the construction, upgrade or operation of:
— a generation unit, and/or
— a storage plant and/or
— a distribution network.

(c) If the support is about a generation unit, explain which resources this generation unit uses to produce electricity, district heating or cooling: renewable energy, waste heat or highly efficient cogeneration including thermal storage solution.

(d) If the support is about a generation unit using waste, confirm that the support is limited to either waste that meets the definition of renewable energy sources or waste used to fuel installations that meet the definition of high-efficiency cogeneration.

(e) Where aid is granted for the upgrade of a district heating and cooling system, clarify if the district heating and cooling system meets the standard of efficient district heating and cooling in line with Article 2(46) and Article 26 of Directive 2023/1791/EU.

(f) Specify what type of costs will be supported by the measure: investment and/or operating costs. …

11.If the aid aims at supporting the upgrade of a district heating and cooling system which however does not lead to system meeting the standard of efficient district heating and cooling within the meaning of Article 26 of Directive 2023/1791/EU as a result of the upgrade supported, please provide a commitment that the beneficiary will start the works to reach that efficiency standard within 3 years following the upgrade works pursuant to point 390 of the CEEAG.

1.2. Incentive effect

To provide the information in this section, please refer to section 3.1.2 (points 26-32) of the CEEAG.

12.Aid can be considered as facilitating an economic activity only if it has an incentive effect. In order to assess the compliance with point 26 of the CEEAG, please explain how the measure(s) ‘induces the beneficiary to change its behaviour, to engage in additional economic activity or in more environmentally-friendly economic activity, which it would not carry out without the aid or would carry out in a restricted or different manner’.

13.In order to assess the compliance with point 27 of the CEEAG, please provide information to confirm that the aid does not support the costs of an activity that the aid beneficiary would anyhow carry out and does not compensate for the normal business risk of an economic activity (⁴⁹⁰).

14.Please provide a comprehensive description of the factual scenario and the likely counterfactual scenario(s). In case of schemes covering different reference projects (⁴⁹¹), such description needs to be submitted for each reference project. For the construction, upgrade and operation of distribution networks, the counterfactual scenario is presumed to be the situation in which the project would not take place (point 395 of the CEEAG).

(a) As provided in point 28, footnote 39 of the CEEAG, please attach to this supplementary information sheet any official board documents, risk assessments, financial report, internal business plans, expert opinions and other studies related to the project under assessment, documents containing information on demand forecasts, costs forecasts, financial forecasts, documents submitted to an investment committee and that elaborate on investment/operation scenarios, or documents provided to the financial institutions. Please note that those documents need to be contemporary to the decision making process concerning the investment/operation decision. If such documents are attached to the supplementary information sheet, please provide below a list of those documents, specifying the author, the date when they were drafted and the context when they were used. …

(b) Please provide in an Annex to this supplementary information sheet (using an Excel file where all formulas are visible) a quantification, for the factual scenario and a credible counterfactual scenario as described under point i., of all main costs and revenues, the estimated weighted average cost of capital (WACC) of the beneficiaries to discount future cash flows, as well as the net present value (NPV) for the factual and counterfactual scenarios, over the lifetime of the project. For cases of individual aid and schemes benefitting a particularly limited number of beneficiaries, those calculations and projections need to be presented at the level of the detailed project business plan, and for aid schemes on the basis of one or more reference projects.

(c) Please include in an Annex to this supplementary information sheet detailed information on the assumptions, methodologies, rationale and underlying sources thereof, used for each aspect of the quantification of costs and revenues in the factual scenario and the likely counterfactual scenario(s) (for instance please include the assumptions used to develop those scenarios). …

15.In order to demonstrate the compliance with points 29 and 31 of the CEEAG:

(a) Please confirm that the start of works on the project or activity did not take place prior to a written aid application by the beneficiary to the national authorities; … OR

(b) For projects that started before the aid application, please demonstrate that the project falls within one of the exceptional cases provided in point 31 of the CEEAG ((a), (b) or (c)) (⁴⁹²). …

16.In order to demonstrate compliance with point 30 of the CEEAG, please confirm that the aid application includes at least the applicant’s name, a description of the project or activity, including its location, and the amount of aid needed to carry it out.

17.In order to demonstrate compliance with point 32 of the CEEAG, please indicate if there are Union standards (⁴⁹³) applicable to the notified measure(s), mandatory national standards that are more stringent or ambitious than the corresponding Union standards, or mandatory national standards adopted in the absence of Union standards. In that context, please provide information to demonstrate the incentive effect.

18.In cases where the relevant Union standard has already been adopted but is not yet in force, please demonstrate that the aid has an incentive effect because it incentivises the investment to be implemented and finalised at least 18 months before the standard enters into force.

1.3. No breach of any relevant provision of Union law

To provide the information in this section, please refer to section 3.1.3 (point 33) of the CEEAG.

19.Please provide information to confirm the compliance with the relevant provisions of EU law, in line with point 33 of the CEEAG.

20.If a levy is used to finance the measure(s), please clarify if the assessment of compliance with Articles 30 and 110 of the Treaty needs to be carried out. In the affirmative, please demonstrate how the measure complies with the provisions of Articles 30 and 110 of the Treaty. In this context, the information submitted under question 5.2 above, where the notified measure(s) is financed through a levy can be referred to.

2.NEGATIVE CONDITION: THE AID CANNOT UNDULY AFFECT TRADING CONDITIONS TO AN EXTENT CONTRARY TO THE COMMON INTEREST

2.1. Minimisation of distortions of competition and trade

2.1.1. Necessity and appropriateness for State aid intervention

To provide the information in this section, please refer to section 4.10.3 (points 391-393 of the CEEAG.

21.Please explain in detail how the project will contribute to the creation, extension or upgrade of efficient district heating and cooling systems.

22.If the measure exceptionally covers operating costs, please demonstrate that these costs cannot be passed on to district heating/cooling consumers without undermining environmental protection in line with point 392 of the CEEAG. Please show that the supported district heating/cooling systems increase energy efficiency, reduce CO2 emissions and other pollution sources as well as network losses, in comparison to alternative district heating/cooling solutions.

23.In line with point 393 of the CEEAG, if the project is based on waste as input fuel, please explain how it respects the waste hierarchy principle (Article 4 point (1) of Directive 2008/98/EU).

2.1.2. The proportionality of the aid

To provide the information in this section, please refer to section 3.2.1.3 and section 4.10.4 (points 394 and 395) of the CEEAG.

24.In order to verify the compliance with point 51 of the CEEAG, please provide the following:

(a) In order to determine the funding gap (⁴⁹⁴), please submit a quantification, for the factual scenario and a credible counterfactual scenario (⁴⁹⁵), of:
(i) all main costs and revenues of the project;
(ii) the estimated weighted average cost of capital (WACC) of the beneficiaries to discount future cash flows;
(iii) net present value (NPV) for the factual and counterfactual scenarios, over the lifetime of the project. …

(b) The reasons for the assumptions used for each aspect of the quantification, and explain and justify any methodologies applied. … For cases of individual aid and schemes benefitting a particularly limited number of beneficiaries, the Member State needs to present the supporting evidence at the level of the detailed project business plan. For cases of aid schemes, the Member State needs to present the supporting evidence on the basis of one or more reference projects. …

25.In case an alternative project is absent, in order to allow the Commission to verify that the aid amount does not exceed the minimum necessary for the aided project to be sufficiently profitable (⁴⁹⁶), please provide the following information:

(a) The internal rate of return (IRR) corresponding to the sector or firm specific benchmark or hurdle rate; or

(b) The normal rates of return required by the beneficiary in other investment projects of a similar kind, its cost of capital as a whole; or

(d) Any other information justifying that the aid amount does not exceed the minimum necessary for the aided project to be sufficiently profitable. …

2.1.3. Cumulation

To provide the information in this section, please refer to points 56-57 of the CEEAG.

26.In order to verify compliance with point 56 of the CEEAG, please clarify if the aid under the notified measure(s) may be awarded concurrently under several aid schemes or cumulated with ad hoc or de minimis aid in relation to the same eligible costs. If that is the case, please provide details on those aid schemes, ad hoc aid or de minimis aid and how the aid will be cumulated.

27.If point 56 of the CEEAG is applicable to the notified aid measure(s), please justify how the total amount of aid granted under the notified measure(s) for a project or an activity does not lead to overcompensation or exceed the maximum aid amount allowed under point 394 of the CEEAG. For each measure that the aid granted under the notified aid measure(s) can be cumulated with, please specify the method used for ensuring compliance with the conditions set out in point 56 of the CEEAG.

28.In case point 57 of the CEEAG is applicable, i.e. the aid granted under the notified measure(s) is combined with centrally managed Union funding (⁴⁹⁷), please justify how the total amount of public funding granted in relation to the same eligible costs does not lead to overcompensation

2.1.4. Transparency

To provide the information in this section, please refer to section 3.2.1.4 (points 58-61) of the CEEAG.

29.Please confirm that the Member State will comply with the requirements on transparency provided in points 58-61 of the CEEAG.

30.Please provide the internet link where the full text of the approved aid scheme or the individual aid granting decision and its implementing provisions, and information on each individual aid award granted ad hoc or under an aid scheme approved on the basis of the CEEAG and exceeding EUR 100 000 will be published.

2.2. Avoidance of undue negative effects of the aid on competition and trade and balancing

To provide the information in this section, please refer to section 4.10.5 (points 396-398) of the CEEAG.

31.If the district heating and cooling systems rely on most polluting fossil fuels such as coal, lignite, oil and diesel, please explain whether the following cumulative conditions are fulfilled pursuant to point 396 of the CEEAG:

(a) The aid is limited to investments on the distribution network.

(b) The distribution network already enables the transport of heat and cooling generated from renewable energy sources, waste heat or carbon neutral sources.

(c) The aid does not result in increased generation of energy from the most polluting fossil fuels (for example by connecting additional customers).

(d) There is a clear timeline involving firm commitments for transitioning away from the most polluting fossil fuels in view of the Union’s 2030 climate target and the 2050 climate neutrality target (see example in the footnote 156 of the CEEAG).

32.If the project incentivises new investments in natural gas or operation of energy generation assets based on natural gas, please explain whether the project ensures the following, in line with point 397 of the CEEAG :

(a) the contribution of the aid to achieving the Union’s 2030 climate target and 2050 climate neutrality target;

(b) how a lock-in effect of the gas-fired energy generation will be avoided;

(c) how the aid does not displace investments into cleaner alternatives that are already available on the market, and does not impede the development of cleaner technologies and their use. …

33.In order to verify compliance with point 398 of the CEEAG, please clarify whether the district heating and cooling system is open to third party access and whether using sustainable alternative heating solutions would be possible.

Section C: Evaluation

To provide the information in this section, please refer to point 76(a) and Section 5 (points 455-463) of the CEEAG.

34.If the notified measure(s) exceed the budget/expenditure thresholds in point 456 of the CEEAG, please either explain why in your view the exception in point 457 of the CEEAG should apply, or attach to this supplementary information sheet an Annex that includes a draft evaluation plan covering the scope mentioned in point 458 of the CEEAG. (⁴⁹⁸)

35.If a draft evaluation plan is provided, please:

(a) provide below a summary of that draft evaluation plan included in the Annex. …

(b) confirm that point 460 of the CEEAG will be respected. …

36.In order to verify the compliance with point 459(b) of the CEEAG, in case the aid scheme is not currently subject to an ex post evaluation, and its duration exceeds three years, please confirm that you will notify a draft evaluation plan within 30 working days following a significant modification increasing the budget of the scheme to over EUR 150 million in any given year or EUR 750 million over the total duration of the scheme.

37.In order to verify the compliance with point 459(c) of the CEEAG, in case the aid scheme is not currently subject to an ex post evaluation, please provide below a commitment that the Member State will notify a draft evaluation plan within 30 working days after recording in official accounts expenditures in excess of EUR 150 million in the previous year.

38.In order to verify the compliance with point 461 of the CEEAG:

(a) Please clarify if the independent expert has already been selected or it will be selected in the future. …

(b) Please provide information on the selection procedure of the expert. …

39.In order to verify the compliance with point 461 of the CEEAG:

(a) Please provide your proposed deadlines for the submission of the interim and final evaluation report. Please note that final evaluation report must be submitted to the Commission in due time to allow for the assessment of the possible prolongation of the aid scheme and at the latest 9 months before its expiry, in line with point 463 of the CEEAG. Please note that that deadline could be reduced for schemes triggering the evaluation requirement in their last 2 years of implementation. …

(b) Please confirm that the interim and final evaluation report will be made public. Please provide the date and internet link where those reports will be publicly available.

Section D: Reporting and monitoring

To provide the information in this section, please refer to Section 6 (points 464-465) of the CEEAG.

40.Please confirm that the Member State will comply with the requirements for reporting and monitoring provided in Section 6, points 464 and 465, of the CEEAG.

PART III.6.M

This supplementary information sheet concerns measures covered in Section 4.11 of the CEEAG. If the notification includes measures that are covered by more than one section of the CEEAG, please once available also fill in the respective supplementary information sheet that concerns the respective section of the CEEAG.

Section A: Summary of the main characteristics of the notified measure(s)

1.Background and objective(s) of the notified measure(s).

1.1.Please indicate whether this is a new measure or an amendment to an existing measure. If it is an amendment, please provide details on the changes to the scheme.

1.2.If not already discussed under section 5.2 of the General Information Form (Part. I), please provide the background and the main objective, including the relation to any Union environmental targets that the measure is intended to support.

1.3.Please indicate any other objectives pursued by the measure. For any objectives that are not purely environmental, please explain whether they may result in any distortions to the internal market.

2.Entry into force and duration:

2.1.To the extent not already provided under section 5.5 of the General Information Form (Part I), please indicate:

(a) For an aid scheme:
— the date as of which it is planned that the scheme will enter into force: …
— The duration of the scheme (⁴⁹⁹). …

(b) For individual aid:
— the (planned) aid granting date (promise of aid): … and
— the payment date (first payment date if various successive payments are foreseen). …

3.Beneficiary(ies)

3.1.If not already provided under section 3 of the General Information Form (Part I), please describe the (potential) beneficiary(ies) of the measure(s).

3.2.Please indicate the location of the (potential) beneficiary(ies) (i.e. if only economic entities located in the respective Member States or also in other Member States are eligible to participate in the measure).

3.3.In order to assess the compliance with point 15 of the CEEAG, please specify if aid is granted under the measure(s) in favour of an undertaking (individual or part of a scheme) that is subject to an outstanding recovery order following a previous Commission decision declaring an aid illegal and incompatible with the internal market.

In the affirmative, please provide information on the amount of aid still to be recovered so that the Commission takes account of it in the assessment of the aid measure(s).

4.Please confirm that the measure(s) does not involve aid to activities falling outside the scope of application of the CEEAG (see point 13 CEEAG). Otherwise, please provide details.

5.Budget and financing of the measure(s).

5.1.If not already mentioned in the table under section 7.1 of the General Information Form (Part I), please provide the annual and/or total budget for the whole duration of the measure(s); if the total budget is not known (for instance because it depends on the results of tenders), please indicate an estimated budget, including the assumptions used to calculate the respective estimated budget. (⁵⁰⁰)

5.2.As the measure concerns a levy, please specify if:

(a) the levy is set by law or any other legislative act; in the affirmative, please provide the legal act, number and date when adopted and entered into force, the internet link to the legal act; …

(b) the levy reduction is financed by raising the levy for other consumers. …

(c) the levy finances fully the measure or only partly. If the levy finances only partly the measure, indicate the other sources of financing of the measure and their respective proportion; …

(d) the levy financing the notified measure also finances other aid measures. If so, indicate the other aid measures financed by the concerned levy. …

Section B: Compatibility assessment of the aid

1.POSITIVE CONDITION: THE AID MUST FACILITATE THE DEVELOPMENT OF AN ECONOMIC ACTIVITY

1.1. Contribution to the development of an economic activity and incentive effect

To provide the information in this section, please refer to section 4.11.1 of the CEEAG.

6.Article 107(3), point (c), of the Treaty on the Functioning of the European Union (‘the Treaty’) provides that the Commission may declare compatible ‘aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest’. Therefore, compatible aid under that provision of the Treatymust contribute to the development of certain economic activity.

Furthermore, State aid can only be considered to facilitate an economic activity if it has an incentive effect. An incentive effect occurs when the aid induces the beneficiary to change its behaviour towards the development of an economic activity pursued by the aid, and if this change in behaviour would not otherwise occur without the aid.

(a) Please explain how the levy reduction mechanism provides incentives to eligible undertakings to avoid the risk of activities moving outside the Union where environmental disciplines are absent or less ambitious or incentives to encourage the electrification of production processes in line with point 400 of the CEEAG. …

(b) Please identify in which part of the (draft) legal basis this consideration is reflected. …

1.2. No breach of any relevant provision of Union law

To provide the information in this section, please refer to section 3.1.3 (point 33) of the CEEAG.

7.Please provide information to confirm the compliance with the relevant provisions of EU law, in line with point 33 of the CEEAG.

2.NEGATIVE CONDITION: THE AID CANNOT UNDULY AFFECT TRADING CONDITIONS TO AN EXTENT CONTRARY TO THE COMMON INTEREST

2.1. Minimisation of distortions of competition and trade

2.1.1. Necessity and appropriateness for State aid intervention

To provide the information in this section, please refer to section 4.11.2 and point 413 of the CEEAG.

8.Point 403 of the CEEAG applies to levy reductions on electricity consumption which finance energy and environmental objectives. For each of the levy on which reductions are envisaged to be granted, please provide a complete and detailed description on the nature, scope and application of the levies by explaining how the levy system works in practice (functioning of the scheme and granting authority) and by making detailed references to its regulatory framework (legal basis).

In particular, please share information about the following elements:

(a) the purpose of each levy (explaining how the revenues raised through each levy are used); …

(b) how and on whom the levy is charged; what is the base on which the levy is charged for an undertaking; the methodology to calculate the levy rate; whether, why and how different levy rates apply across the charged base; how frequently and on which basis the levy rate is reviewed; …

(c) describe the various entities involved in setting and reviewing the levy as well as those involved in collecting and managing the revenues raised through the levy; …

(d) describe how the levy collection and redistribution system work; …

(e) provide the most recent annual figures on applied levy rates and total revenues raised. If available, please provide projections for the future; …

9.Point 404 of the CEEAG states that Member States have to include all reductions on potentially multiple electricity levies for energy-intensive users into a single scheme and to inform the Commission of the cumulative effect of all eligible levies and all reductions proposed.

(a) Please confirm that all levy reductions to be granted on the basis of Section 4.11 of the CEEAG are covered by the notified measure, and that possible future reductions on levies other than those covered will be notified through an amendment to the notified measure. …

(b) On the basis of recent years and possible projections, please provide information on the cumulative effect of all relevant levies (both in absolute and relative terms, compared to overall electricity costs and overall electricity levies, charges and taxes) and of related reductions for the beneficiaries under the notified scheme. …

10.Please describe whether the aid under the notified measure will be in the form of an ex ante reduction in levies, an ex post compensation amount (refund) or a combination of the two. Please make specific references in your answer to the (draft) legal basis (e.g. Article 7, paragraph 3).

(a) Pursuant to point 413 of the CEEAG, if the aid is granted in the form of a reduction in levies, please confirm:
(i) that an ex post monitoring mechanism is in place; …
(ii) and that any overpayment of aid will be repaid before 1 July of the following year. Indicate where this information can be found in the (draft) legal basis. …

(b) Pursuant to point 413, last sentence, of the CEEAG, if the aid is granted in the form of a refund, please confirm that it is calculated on the basis of the observed levels of electricity consumption and, if applicable, the gross value added over the period of time during which the eligible levies were applied. …

2.2. Eligibility

To provide the information in this section, please refer to section 4.11.3.1 (points 405-407) of the CEEAG.

11.Point 405 of the CEEAG defines electro-intensive sectors ‘at significant risk’ (point (a)) and ‘at risk’ (point (b)). In order to verify the compliance with point 405 of the CEEAG, please confirm that all eligible electro-intensive sectors ‘at risk’ and ‘at significant risk’ under the notified measure are listed in related parts of Annex I to the CEEAG and provide in annex to this form the lists of NACE-4 sectors ‘at risk’ and ‘at significant risk’ that are eligible for aid under the measure, indicating where this information can be found in the (draft) legal basis (e.g. Article 7, paragraph 3).

12.Point 406 of the CEEAG states that a sector or subsector (⁵⁰¹) not included in Annex I of the CEEAG will also be considered eligible provided that it meets the eligibility criteria of point 405. If aid under the notified measure is intended to be granted also to sectors and/or subsectors not included in Annex I to the CEEAG, please:

(a) demonstrate compliance with the methodology under point 405 of the CEEAG for each (sub)sector; …

(b) provide in annex to this form data that is representative of the sector or subsector at Union level (⁵⁰²), verified by an independent expert and based on a time period of at least three consecutive years starting no earlier than 2013. …

13.Please describe how applicants will have to demonstrate that they operate in an eligible sector, indicating where this information can be found in the (draft) legal basis (e.g. Article 7, paragraph 3).

14.Please list all other conditions to be eligible for aid under the notified measure, indicating where this information can be found in legal basis (e.g. Article 7, paragraph 3). In particular, please explain (a) whether beneficiaries or (sub)sectors in principle eligible under Annex I CEEAG are excluded, (b) whether there are additional eligibility criteria which would apply and are not mentioned in Section 4.11 CEEAG or (c) whether different levy reductions are envisaged for beneficiaries in the same category.

15.In line with point 407 of the CEEAG, it is possible to further restrict the eligible beneficiaries of the measure. If that is the case, please explain for each such additional eligibility condition the underlying rationale and demonstrate that (i) the respective condition is based on objective, non-discriminatory and transparent criteria and that (ii) the aid is granted, in principle, in the same way for all eligible beneficiaries in the same sector if they are in a similar factual situation.

2.3. The proportionality of the aid (aid limited to the minimum necessary to attain its objective), including cumulation

2.3.1. The proportionality of the aid

To provide the information in this section, please refer to section 4.11.3.2 and point 407 of the CEEAG.

16.With a view to proving compliance with section 4.11.3.2 and point 407 of the CEEAG, please provide a complete and detailed description of the methodology to calculate levy reductions applicable to the eligible beneficiaries, indicating where this information can be found in the (draft) legal basis (e.g. Article 7, paragraph 3). In particular:

(a) Please indicate the maximum levy reduction rate applicable to undertakings operating in sectors ‘at risk’ and ‘at significant risk’, respectively; …

(b) Please indicate whether the notified measure foresees, compared to point ‘i’ above, further limits the additional costs resulting from the relevant electricity levies. If it is the case, please also (a) provide the value of such limits in relation to the gross value added (‘GVA’) of undertakings operating in sectors ‘at risk’ and ‘at significant risk’ and (b) describe how the GVA of eligible undertakings operating in sectors ‘at risk’ and ‘at significant risk’ is computed; …

17.Indicate whether the notified measure foresees, in line with point 410 of the CEEAG, higher aid intensities for those undertakings operating in sectors ‘at risk’ that reduce the carbon footprint of their electricity consumption.

In the affirmative:

(a) Please describe the higher aid intensities and confirm the related conditions to be fulfilled by the undertakings concerned (i.e. 50 % of electricity consumption from carbon-free sources, of which either at least 10 % from a forward instrument such as a PPA or at least 5 % from on-site or near-site generation), indicating where this information can be found in the (draft) legal basis (e.g. Article 7, paragraph 3); …

(b) Please describe how the fulfilment of these conditions will be monitored and, in case of ex-post monitoring, what would be the effect in case of non-compliance by an undertaking. …

18.If applicable, please describe any further modulation of the levy reduction rate across beneficiaries operating in sectors ‘at risk’ and ‘at significant risk’, respectively, indicating where this information can be found in the (draft) legal basis (e.g. Article 7, paragraph 3). Please demonstrate that (a) different levy reductions are based on objective, non-discriminatory and transparent criteria and that (b) the aid is granted, in principle, in the same way for all eligible beneficiaries in the same sector if they are in a similar factual situation.

2.3.2. Energy audits and management systems

To provide the information in this section, please refer to section 4.11.3.4 of the CEEAG.

19.In line with point 414 of the CEEAG, please describe how the national authorities will verify under the notified measure that beneficiaries comply with the obligation to conduct an energy audit within the meaning of Article 8 of Directive 2012/27/EU. Please indicate where this information can be found in the (draft) legal basis (e.g. Article 7, paragraph 3).

20.Point 415 of the CEEAG provides that beneficiaries required to conduct an energy audit must comply with at least one of three following options, i.e. (a) implementing audit recommendations, to the extent that the pay-back time is 3 years maximum and that the costs of their investments is proportionate, or (b) covering at least 30% of their electricity consumption from carbon-free sources, or (c) investing at least 50% of the aid in projects that lead to substantial reductions of greenhouse gas emissions. Please describe how the national authorities will monitor under the notified measure that beneficiaries required to conduct an energy audit under Article 8(4) of Directive 2012/27/EU comply with one or more of the three options listed in point 415 of the CEEAG, indicating where this information can be found in the (draft) legal basis (e.g., Article 7, paragraph 3). In particular, please provide details for each option foreseen in the notified measure:

(a) how exactly beneficiaries will have to demonstrate compliance; …

(b) when the deadline is to comply with the requirements (e.g., to complete the relevant investments within one year from the granting of the aid) and how frequently beneficiaries will have to prove compliance (e.g., on an annual basis); …

(d) what the consequences of non-compliance will be for the beneficiaries (e.g., refusal to grant the aid, if ex ante verification, or reimbursement of the aid already granted, if ex post verification). …

2.3.3. Cumulation

To provide the information in this section, please refer to points 56-57 of the CEEAG.

21.In so far as not already provided under the General Information Form (Part I) and in order to verify compliance with point 56 of the CEEAG, please clarify if the aid under the notified measure(s) may be awarded concurrently under several aid schemes or cumulated with ad hoc or de minimis aid in relation to the same eligible costs. If that is the case, please provide details on those aid schemes, ad hoc aid or de minimis aid and how the aid will be cumulated.

22.If point 56 of the CEEAG is applicable to the notified aid measure(s), please justify how the total amount of aid granted under the notified measure(s) for an activity does not lead to overcompensation or exceed the maximum aid amount allowed under points 408 to 410 of the CEEAG. For each measure that the aid granted under the notified aid measure(s) can be cumulated with, please specify the method used for ensuring compliance with the conditions set out in point 56 of the CEEAG.

23.In case point 57 of the CEEAG is applicable, i.e., the aid granted under the notified measure(s) is combined with centrally managed Union funding (⁵⁰³), please justify how the total amount of public funding granted in relation to the same eligible costs does not lead to overcompensation.

2.3.4. Transitional rules

To provide the information in this section, please refer to section 4.11.3.5 of the CEEAG.

24.Please indicate whether the present notification encompasses non-notified aid granted in the form of reduced electricity levies for energy-intensive users in the period prior to the publication of the CEEAG. In the affirmative, please explain how the non-notified aid complies with point 419 of the CEEAG, paragraphs (a) and (b).

25.Please indicate whether the notified measure establishes a transitional plan to avoid disruptive changes in the levy burden for individual undertakings that do not meet the eligibility conditions set out in Section 4.11 of the CEEAG. In the affirmative, please reply to the next questions of this section.

26.In line with point 416 of the CEEAG, please explain how eligibility to the transitional plan will be limited to undertakings that (i) met the eligibility criteria of Section 3.7.2 of the Guidelines on State aid for environmental protection and energy 2014-2020, and (ii) received aid in the form of reduced levies in at least one of the 2 years prior to the amendment of existing aid schemes in order to bring them into line with the CEEAG. Please indicate where this information can be found in the (draft) legal basis (e.g. Article 7, paragraph 3)

27.Please describe how the transitional plan will entail a progressive and complete adjustment to the conditions resulting from the application of the eligibility and proportionality criteria of section 4.11 of the CEEAG, and notably how the aid intensity decreases over time and how the GVA cap increases over time in line with the schedule mentioned in point 417 of the CEEAG. Please make specific references to where this information can be found in the (draft) legal basis (e.g. Article 7, paragraph 3).

28.Please indicate whether the transitional plan will exceptionally allow fixed aid intensities throughout the entire transitional period, provided that the undertakings concerned reduce the carbon footprint of their electricity consumption in line with the conditions in point 418 of the CEEAG (i.e. 50 % of electricity consumption from carbon-free sources, of which either at least 10 % from a forward instrument such as a PPA or at least 5 % from on-site or near-site generation). In the affirmative, please indicate where this information can be found in the (draft) legal basis (e.g. Article 7, paragraph 3) and explain how compliance with point 418 of the CEEAG is ensured and monitored by the national authorities.

2.4. Transparency

To provide the information in this section, please refer to section 3.2.1.4 (points 58-62) of the CEEAG.

29.Please confirm that the Member State will comply with the requirements on transparency provided in points 58-61 of the CEEAG.

30.In order to verify compliance with point 61 of the CEEAG, please confirm that the information provided in point 58(b) will be available for at least 10 years from the date on which the aid was granted in order to allow the enforcement of State aid rules under the Treaty,

2.5. Avoidance of undue negative effects of the aid on competition and trade and balancing

To provide the information in this section, please refer to section 3.2.2 of the CEEAG.

31.In order to verify compliance with point 70 of the CEEAG:

(a) please confirm that the duration of the scheme is of maximum 10 years from the date of the notification of the Commission’s decision declaring the aid compatible; …

(b) please confirm that if the Member State wishes to extend the duration of the measure beyond that maximum period of 10 years, it will renotify the measure(s). …

3.WEIGHING THE POSITIVE EFFECTS OF THE AID AGAINST THE NEGATIVE EFFECTS ON COMPETITION AND TRADE

To provide the information in this section, please refer to section 3.3 (points 71-76) and points 400-402 of the CEEAG.

32.In line with point 75 of the CEEAG, please clarify if the notified measure(s) includes features to facilitate the participation of SMEs. In the affirmative, please provide information on those features and justify how the positive effects of ensuring participation and acceptance of SMEs in the notified measure(s) outweigh the possible distortive effects.

33.As regards the application of point 76(c) of the CEEAG, please specify if the aid measure(s) is subject to a time limitation.

Section C: Evaluation

To provide the information in this section, please refer to point 76(a) and Section 5 (points 455-463) of the CEEAG.

34.If the notified measure(s) exceed the budget/expenditure thresholds in point 456 of the CEEAG, please either explain why in your view the exception in point 457 of the CEEAG should apply, or attach to this supplementary information sheet an annex that includes a draft evaluation plan covering the scope mentioned in point 458 of the CEEAG. (⁵⁰⁴)

35.If a draft evaluation plan is provided, please:

(a) provide below a summary of that draft evaluation plan included in the Annex. …

(b) confirm that point 460 of the CEEAG will be respected. …

36.In order to verify the compliance with point 459(b) of the CEEAG, in case the aid scheme is not currently subject to an ex post evaluation, and its duration exceeds three years, please confirm that you will notify a draft evaluation plan within 30 working days following a significant modification increasing the budget of the scheme to over EUR 150 million in any given year or EUR 750 million over the total duration of the scheme.

37.In order to verify the compliance with point 459(c) of the CEEAG, in case the aid scheme is not currently subject to an ex-post evaluation, please provide below a commitment that the Member State will notify a draft evaluation plan within 30 working days after recording in official accounts expenditures in excess of EUR 150 million in the previous year.

38.In order to verify the compliance with point 461 of the CEEAG:

(a) Please clarify if the independent expert has already been selected or it will be selected in the future. …

(b) Please provide information on the selection procedure of the expert. …

39.In order to verify the compliance with point 461 of the CEEAG:

(a) Please provide your proposed deadlines for the submission of the interim and final evaluation report. Please note that final evaluation report must be submitted to the Commission in due time to allow for the assessment of the possible prolongation of the aid scheme and at the latest 9 months before its expiry, in line with point 463 of the CEEAG. Please note that that deadline could be reduced for schemes triggering the evaluation requirement in their last 2 years of implementation. …

(b) Please confirm that the interim and final evaluation report will be made public. Please provide the date and internet link where those reports will be publicly available. …

Section D: Reporting and monitoring

To provide the information in this section, please refer to Section 6 (points 464-465) of the CEEAG.

40.Please confirm that the Member State will comply with the requirements for reporting and monitoring provided in Section 6, points 464 and 465, of the CEEAG.

PART III.7

SUPPLEMENTARY INFORMATION SHEET ON RISK FINANCE AID

Please complete this supplementary information sheet, in addition to the 'General information' form, for the notification of any aid scheme covered by the Guidelines on State aid to promote risk finance investments ('RFG') (⁵⁰⁵) . Please consult paragraph 35 of RFG for definitions.

Please submit, together with this Supplementary Information Sheet, an in-depth‘ex ante assessment’ that proves the specific market failure or other relevant obstacle, and justifies how the notified scheme is necessary, appropriate and proportionate to address them (⁵⁰⁶).

1.SCOPE

1.1. Reasons for notifying the scheme:

(a) □The scheme does not comply with Regulation (EU) No 651/2014 (⁵⁰⁷). Please identify the provisions in the legal basis of the scheme that go beyond Regulation (EU) No 651/2014 and indicate which Regulation (EU) No 651/2014 provisions they go beyond: …

(b) □The scheme does not comply with the de minimis Regulation (⁵⁰⁸). Please indicate the reasons why: …

(c) □The scheme does not comply with the market economy operator test at one or more levels (at the level of the investors, at the level of the financial intermediary and its manager, and at the level of the undertakings in which the investment is made) (See Commission Notice on the notion of Aid (⁵⁰⁹); for loans, reference is made to the Communication on the Reference Rate (⁵¹⁰); for guarantees, reference is made to the Guarantee Notice (⁵¹¹)). Please specify the reasons why: …

(d) □The scheme does not contain aid and it is notified for legal certainty reasons.

1.2. Scope of the notified scheme: Please tick as appropriate to confirm:

(a) □The notified scheme is deployed through financial intermediaries or alternative trading platforms, except for fiscal incentives for direct investments in eligible undertakings (paragraph 22 of RFG). Please provide the reference to the relevant provision of the legal basis: …

(b) □The notified scheme excludes large companies, except for middle-capitalisation firms (‘mid-caps’) that are either small mid-caps or innovative mid-caps (paragraph 23 of RFG). Please provide the reference to the relevant provision of the legal basis: …

(c) □The notified scheme excludes risk finance aid to companies listed on the official list of a regulated market (paragraph 24 of RFG). Please provide the reference to the relevant provision of the legal basis: …

(d) □The notified scheme involves participation from independent private investors (paragraph 25 of RFG). Please provide the reference to the relevant provision of the legal basis: …

(e) □The notified scheme provides that, as regards asymmetric risk-reward sharing between the State and private investors, there is a substantial risk incurred by private investors or the State receives a reward on its investment (paragraph 26 of RFG). Please provide the reference to the relevant provision of the legal basis: …

(f) □The notified scheme cannot be used to support buy-outs (paragraph 27 of RFG). Please provide the reference to the relevant provision of the legal basis: …

(g) □The notified scheme provides that no risk finance aid will be granted to undertakings in difficulty, as defined in the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (⁵¹²) (Please note that under the RFG, SMEs that have been operating in any market for no longer than the eligibility period fixed in Article 21 of Regulation (EU) No 651/2014 that qualify for risk finance investments following due diligence by the selected financial intermediary will not be considered as undertakings in difficulty, unless they are subject to insolvency proceedings or fulfil the criteria under their domestic law for being placed in collective insolvency proceedings at the request of their creditors) (paragraph 28(a) of RFG). Please provide the reference to the relevant provision of the legal basis: …

(h) □The notified scheme excludes aid to undertakings that have received illegal aid that has not yet been fully recovered (paragraph 28(b) of RFG).

(i) □The notified scheme does not concern aid to export-related activities towards third countries or Member States, namely aid directly linked to the quantities exported, the establishment and operation of a distribution network or to other current costs linked to the export activity, as well as aid contingent upon the use of domestic over imported goods (paragraph 29 of RFG).

(j) □The notified scheme does not make aid subject to the obligation to use nationally produced goods or national services; does not violate the freedom of establishment, where the aid is subject to the obligation for financial intermediaries, their managers or final beneficiaries to have or move their headquarters in the territory of the Member State concerned; and does not impose conditions which violate Article 63 of the Treaty pertaining to the free movement of capital (paragraph 41 of RFG)

2.DESCRIPTION OF THE SCHEME

2.1. Budget of the scheme:

(a) What is the total investment amount (including both the public and private part) per target undertaking over the whole investment cycle for each undertaking benefiting from the scheme (that is to say: not per annum)? Please specify the public and private part: …

(b) What is the size of the annual budget of the scheme? …

(d) What is the size of the investment fund(s) set up under the scheme? …

(e) Is the scheme to be co-financed by Union funds (InvestEU Fund, European Social Fund, European Regional Development Fund, other)? Please specify which Union fund: …

2.2. Duration of the scheme:

(a) What is the duration of the scheme? (Please specify the dates of its entry into force and its end date)

(b) What is the envisaged duration of the investment period?

(d) Are there different end dates for different forms of aid under the scheme? …

2.3. Target undertakings which are the final beneficiaries of the notified scheme: The ex ante assessment (⁵¹³)demonstrates the need for the following undertakings to be targeted by the scheme as final beneficiaries (paragraphs 53 to 66 of RFG)

(a) □Small mid-caps (an undertaking that is not an SME and (i) whose number of employees does not exceed 499, calculated in accordance with Articles 3 to 6 of Annex I to Regulation (EU) No 651/2014, and (ii) whose annual turnover does not exceed EUR 100 million or whose annual balance sheet does not exceed EUR 86 million). With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

(b) □Innovative mid-caps as defined under Article 2 of Regulation (EU) No 651/2014. With reference to the ex ante assessment, please provide a summary of its the economic evidence and appropriate justification: …

(c) □Undertakings receiving the initial risk finance investment while they have been operating in any market for longer than the eligibility period fixed in Article 21, paragraph 3, letter b, of Regulation (EU) No 651/2014. With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

(d) □Start-ups and SMEs requiring a risk finance investment (including public and private) of an amount exceeding the maximum amount of EUR 16.5 million per eligible undertaking fixed in Article 21 of Regulation (EU) No 651/2014. With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

(e) □Alternative trading platforms not fulfilling the conditions of Article 23 of Regulation (EU) No 651/2014. With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

(f) □Other: … With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

2.4. Financial instruments: the ex ante assessment demonstrates a need for the following design parameters not complying with Regulation (EU) No 651/2014 (paragraphs 82 to 88 of RFG):

(a) □Independent private investors' participation below the ratios required in Article 21, paragraph 12, of Regulation (EU) No 651/2014 (paragraphs 82 and 83 of RFG). With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

(b) □Financial instruments with design parameters above the ceilings provided for in Article 21, paragraph 10, letters b (State first loss) and c (guarantee rate), Regulation (EU) No 651/2014, that is to say where the public investor takes more risk than allowed under Regulation (EU) No 651/2014 (paragraphs 84 and 85 of RFG). With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

(c) □Financial instruments other than guarantees where investors, financial intermediaries and their managers are selected by giving preference to downside protection (i.e. protection against losses) over upside incentives (i.e. returns from profits (paragraphs 86 to 88 of RFG). With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

(d) □Other: … With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

2.5. Fiscal instruments: the ex ante assessment demonstrates that the following design parameters which do not comply with Regulation (EU) No 651/2014 are required:

(a) □Fiscal incentives to corporate investors (including financial intermediaries or their managers acting as co-investors) (paragraphs 89 and 90 of RFG). With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

(b) □Fiscal incentives to corporate investors for investment in SMEs via an alternative trading platform (paragraph 81 of RFG). With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

(c) □Other: … With reference to the ex ante assessment, please provide a summary of its economic evidence and appropriate justification: …

2.6. Private investors participating in the notified scheme with equity, loans or guarantees:

(See the definition of ‘independent private investor’ in Article 2 of Regulation (EU) No 651/2014).

(a) Please provide the characteristics of the private investors participating in the measure (e.g. corporate investors, natural persons, etc.): …

(b) Do the private investors provide equity, loans or guarantees at the level of the financial intermediary (e.g. fund of funds) or at the level of the final beneficiaries? Please specify the level and how much: …

(c) Do the financial intermediaries implementing the scheme (see the following section 2.7.) also co-invest (and are hence to be considered also as private investors)?
□ Yes. Please specify: …
□ No.

2.7. Financial intermediaries and entrusted entity implementing the notified scheme:

(See broad definition of financial intermediary in paragraph 35(11) of RFG; it also includes funds with and without legal personality)

(a) Please specify the nature of the financial intermediaries implementing the scheme: …

(b) Does the implementation of the measure involve an 'entrusted entity' (as defined in paragraph 35(5) of RFG)?
□ Yes. Please give details:
□ No.

(c) Does the entrusted entity co-invest with the Member State out of its own resources?
□ Yes. Please provide the reference to the legal basis authorising the entrusted entity to make such co-investment: …
□ No.

(d) How is the entrusted entity selected?
□ Through an open, transparent, non-discriminatory and objective selection procedure. Please specify: …
□ Through direct appointment. Please explain the method for the calculation of its compensation for implementing the measure that ensures it is not overcompensated (paragraph 150 of RFG): …

(e) Does the entrusted entity manage the fund(s) through which the funding is provided under the notified scheme? □Yes. □No.

(f) Characteristics of the management company in charge of implementing the measure at the level of the financial intermediary: …

(g) In the case of several levels of financial intermediaries involved in the scheme (including funds of funds), please provide all relevant information for each level of financial intermediary: …

2.8. Is any further party involved in the notified scheme (other than the public authority granting the aid, the target undertakings, the financial intermediaries, and the private investors)?

□ Yes. Please specify: …

□ No.

2.9. Detailed description of the investment strategy and investment instrument(s):

— What is the investment strategy of the financial intermediary?

— Which public policy objectives are pursued with this investment strategy?

— Please attach a drawing to visualise the structure of the scheme and its instrument(s), indicating all parties involved, the size of their involvement, as well as, if appropriate, an annex summarising the overall design of the notified scheme. …

— Please outline the design parameters to solicit private investors and financial intermediaries to manifest their interest in participating in the notified scheme, by replying to the questions in this section. …

2.9.1. Financial instruments

Risk finance aid measures in the form of financial instruments must:

(1) be deployed through financial intermediaries (paragraph 22 of RFG) and

(2) provide for the participation of private investors (paragraph 25 of RFG). Hence, those measures are composed of three levels: (i) a State intervention for financial intermediaries, (ii) investments by financial intermediaries into final beneficiary undertakings, and (iii) investment by private investors at either of the previous two levels.

2.9.1.1.Intervention at the level of financial intermediaries

A. STATE INTERVENTION AT THE LEVEL OF FINANCIAL INTERMEDIARIES

The State provides the following to financial intermediaries (Please tick and complete as applicable):

□ Equity (including quasi-equity) injection by the State at the level of the financial intermediaries

1.Please provide the following information:

— Terms of the equity injection (please include also a comparison with the market terms for such equity injection): …

— Type of financial intermediary: …

— Type of funding structure of the financial intermediary (e.g. investment fund with a percentage of private and public participation; fund of funds multi-stage structure with specialised sub-funds, public fund co-investing with private investors on a deal-by-deal basis) Please explain in detail: …

2.In case of quasi-equity, please describe in detail the nature of the envisaged instrument:

3.If there is private participation at this level (e.g. private investors provide equity to the financial intermediary alongside the State):

— Please indicate the participation ratios of the public and private investors: …

— Please indicate the type of preferential treatment envisaged for the benefit of participating private investors, as described in the call for expression of interest (please give details): … □ Upside incentives (obtaining better profits): … □ Downside protection (protection from losses): …

— If non-pari passu loss-sharing features go beyond the limits set out in Article 21, paragraph 10, of Regulation (EU) No 651/2014, please provide economic evidence and justification, with reference to the ex ante assessment (paragraph 113 of RFG): …

— If relevant, please indicate whether the first loss piece borne by the public investor is capped (paragraph 113 of RFG): □ Yes. Please specify how that cap has been fixed: … □ No. Please explain: …

4.Please describe how the instrument is designed to ensure alignment of interests between the financial intermediary's investment strategy and the public policy objectives:

5.Please provide a detailed explanation of the duration of the instrument or of the exit strategy underpinning the investment in equity, and how the exit is strategically planned by the public investor:

6.Other relevant information:

□ FUNDED DEBT INSTRUMENTS: LOAN INSTRUMENTS (HEREAFTER 'LOANS') AT THE LEVEL OF FINANCIAL INTERMEDIARIES

1.Please provide the following information:

— Type of loans (e.g. subordinated, portfolio risk-sharing) please provide details: …

— Terms of the loans under the measure (please include also a comparison with the market terms for such loans): …

— Maximum size of the loan: …

— Maximum duration of the loan: …

— Collateral or other requirements: …

— Other relevant information: …

2.Please provide reference to the relevant provisions of the legal basis that prohibit the use of the aid to refinance existing loans (paragraph 46 of RFG):

3.If private participation takes place at this level (e.g. private investors provide loans to the financial intermediary alongside the State):

— Please indicate the participation ratios of the public and private investors/lenders: … In particular, in case of portfolio risk-sharing loans, what is the co-investment rate by the selected financial intermediary? Please note that it should not be lower than 30% of the value of the underlying loan portfolio (paragraph 117 of RFG): The rate is …%

— Please describe the risk and reward sharing between the public and private investors or lenders: … Where the public investor/lender assumes a first loss position exceeding the cap set out in Regulation (EU) No 651/2014 (i.e. 25%), it needs to be justified by reference to a severe market failure identified in the ex ante assessment (paragraph 116 of RFG). Please provide a summary of such justification: …

— If there are other risk-mitigation mechanisms for the benefit of the private investors/lenders, please explain: …

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