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July 28, 2022

EC approves compensation for pandemic-hit Deutsche Bahn subsidiaries

The funding has been approved in accordance with EU State aid rules.

The European Commission (EC) has approved a €215m German support measure aimed at compensating Deutsche Bahn for damages faced by its three subsidiaries owing to Covid-19 headwinds.

These subsidiaries are DB Netz, DB Energie, and DB Station&Service.

The funding, which will be provided in the form of equity infusion, has been sanctioned in accordance with EU State aid rules.

It will help Deutsche Bahn compensate for damages to these three subsidiaries between 16 March and 31 May 2020 due to the pandemic and the restrictive measures.

The curbs imposed during that period resulted in a direct negative impact on rail freight, as well as passenger traffic.

It also showed a negative impact on demand for the rail infrastructure services delivered by these subsidiaries, leading to reduction in revenues for these entities.

DB Netz is engaged in managing rail infrastructure in Germany, while DB Energie runs the German traction power and rail filling station network, as well as delivering traction power and mineral oil products to rail transport firms.

DB Station&Service is involved in the collection of charges for the use of station stops and the lease of rental spaces in stations.

Last year in August, the EC announced a €550m German support measure for another Deutsche Bahn subsidiary – DB Fernverkehr – to compensate for its pandemic-related damages.

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