
ноември 3, 2023
On June 9th the OEM organized a round table discussion with On June 9, OEM organized a roundtable discussion at the highest level, the Assembly of ORM to present an additional set of support measures to deepen the country’s resilience and preparedness for future energy price spikes. Priority was given to short term measures due to the North Macedonia’s fragile energy security and its exposure to economic volatility as well as the instability of the current geopolitical situation. These recommendations complement the first set of measures proposed in December last year, with both documents having been supported by the International Labour Organisation (ILO).
The proposed measures build on the global support measures that proved their efficacy in alleviating the effects of the energy crisis. A key learning from global experience that North Macedonia should apply to future response measures is that targeting is of the utmost importance when providing support to companies (and households).
One measure drawn from global experience is the use of smart subsidies to promote energy savings. Under such a system, companies with lower energy consumption are eligible for subsidies which can be organized through a voucher system or similar. The government can introduce vouchers for companies that reduce energy consumption by investing in infrastructure for independent renewable energy generation. The OEM recommends that the system should incorporate a mechanism to ensure that companies that record higher energy consumption due to an increase in production will nevertheless remain eligible for subsidies.
Another efficient measure applied in some EU countries is the introduction of an electricity price brake to counteract high energy costs and stimulate energy savings. Under this system, the electricity price is capped for all consumption under a specified amount. Any consumption over this is paid for at the market rate.
Finally, protection should be provided for healthy companies facing bankruptcy due to high energy prices. This can take the form of additional time afforded to companies experiencing short-term financial difficulties. Government support should specifically focus on companies that were previously solvent but are now experiencing liquidity and solvency problems stemming directly from the crisis. This strategy will reduce the risk of funds inadvertently being used to prop up inefficient companies.
Additional policies successfully adopted in other countries include, among others, windfall profit taxes on industries recording excessive levels of profitability amid the crisis, and higher thresholds on expenses deductible from CIT or PIT (such as the usage of personal cars for business purposes).
The new proposals were well received by the policymakers, and it was agreed to take the discussions further with the Economic and Social Council. Looking further ahead, the OEM’s strategic goal is to advocate for a smooth transition to a renewable energy economy, seeing this as an integral part of a sustainable recovery, which must be carried out in a way that is both fair and economically viable. The OEM remains fully committed to providing input and expertise to further inform government decisions in this area.










