Cepi urges EU to reform and extend METSAF energy aid scheme

Cepi, the European paper industry association, has called on the European Commission to reform the Middle East crisis Temporary State Aid Framework (METSAF), saying design flaws mean no member state has yet enacted support under it. It proposes raising eligibility and aid-cumulation limits from 50% to 70%, dropping a reinvestment obligation, and extending the framework through at least 2027.

Why this mattersWith no member state using the aid framework, European pulp and paper mills stay exposed to electricity prices Cepi puts at two to three times US and Chinese levels.

• European electricity prices are two to three times those in the US and China, per Cepi
• No EU member state has yet enacted support under METSAF because of design flaws, Cepi says
• Cepi proposes raising eligible electricity consumption and aid-cumulation limits from 50% to 70%
• Cepi wants the obligation to reinvest at least 50% of aid in electricity-system-cost measures removed
• Cepi seeks extension of METSAF through at least 2027, and beyond until prices become internationally competitive

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