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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure FR-2022-25/2395 – measures in France

Subsidy for companies that are large consumers of gas and electricity

Aide aux entreprises grandes consommatrices de gaz et d’électricité

Country France , applies nationwide
Time period Temporary, 15 June 2022 – 31 August 2022
Context War in Ukraine
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Frédéric Turlan (IRshare) and Eurofound
Measure added 20 May 2022 (updated 14 June 2022)

Background information

Supporting businesses whose gas and electricity costs represent a high proportion of their expenses. This is the objective of the aid set up by the Government as part of the economic and social resilience plan.

The aim of this aid is to mitigate the effects of the energy crisis, to support the competitiveness of companies and to avoid production stoppages at the sites that consume the most gas and electricity, particularly those providing essential production. It is a temporary, targeted and capped emergency aid.

Content of measure

The scheme targets companies whose gas and electricity purchases amounted to at least 3% of their turnover in 2021 and which experience a doubling of their unit cost of electricity or gas purchases (in euros/MWh).

The aid compensates for a share of the eligible costs, i.e. the additional costs of gas or electricity compared to 2021 beyond this doubling. Depending on the company's situation, the aid will be granted in the following ways:

  • aid equal to 30% of the eligible costs, with a ceiling of €2 million, for companies whose gross operating surplus (GOS) falls by 30% compared to 2021.
  • aid equal to 50% of eligible costs, with a ceiling of €25 million, for firms with a negative EBITDA (earnings before interest, taxes, depreciation, and amortization) and losses of up to twice the eligible costs. The aid is limited to 80% of the amount of losses.
  • aid equal to 70% of eligible costs, with a ceiling of €50 million, for companies which meet the same criteria as above and which operate in one of the sectors most exposed to international competition. The aid is limited to 80% of the amount of these losses.

For companies which are part of a group, the amount of the aid ceilings will be assessed at group level. Compliance with the eligibility criteria relating to electricity and gas expenditure, EBITDA and eligible costs will be verified and calculated by a trusted third party (accountant or auditor).

The scheme will open in the second half of June for applications for the first quarterly eligible period March-April-May. An application for the second eligible period June-July-August will be opened later.

Use of measure

Not available yet.

Target groups

Workers Businesses Citizens
Does not apply to workers Companies providing essential services
Other businesses
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Sectoral social partner have been consulted to design the measures (mainly employers' organisations).

Views and reactions

The measures were supported by the main sectoral social partners.

Sources

  • 12 May 2022: Ukraine : une aide aux entreprises grandes consommatrices de gaz et d’électricité (www.economie.gouv.fr)

Citation

Eurofound (2022), Subsidy for companies that are large consumers of gas and electricity, measure FR-2022-25/2395 (measures in France), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FR-2022-25_2395.html

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