Factsheet for measure
FR-2022-49/3087
–
Updated
– measures in France
State aid to reduce energy bills for businesses
Aide de l'Etat pour réduire les factures d'énergie des entreprises
Background information
On 27 October 2022, the government announced new aids to support businesses and local authorities in the face of soaring energy bills.
The first scheme came into force on 1 January 2023 and was named "electricity shock absorber". It aims to have the State pay part of the 2023 bill for some of the institutions without access to the
tariff shield
set up for individuals.
The second measure consists of simplifying an existing system for companies to obtain aid on their energy bills.
Content of measure
The "electricity shock absorber" aims to have the State pay part of the 2023 bill of small and very small businesses, but also of local authorities, hospitals, universities and associations, which do not have access to the
tariff shield
. The State will split their electricity bill: one part (between 40 and 60% approximately) is invoiced by the suppliers at the advantageous Arenh rate (regulated access to historical nuclear electricity), the other is exposed to market prices. The State will pay up to 50% of the part of the electricity bill of companies exposed to market volatility, when the invoiced price exceeds €325 per MWh, with a ceiling set at €800 per MWh. The reduction is automatic on invoices and the compensation is paid directly to suppliers by the State.
On 29 November 2022, the government presented adjustments to the "electricity shock absorber" designed to help very small businesses, SMEs and local authorities without a tariff shield to cope with the rise in electricity prices. To be eligible, SMEs must have fewer than 250 employees, a turnover of €50 million and a balance sheet of €43 million. On the other hand, VSEs that consume less than 36 kilovoltamperes are already eligible for the "tariff shield". According to the new criteria announced, the aid will concern entities paying more than €180 per MWh (excluding tax and CSPE) for their electricity. This floor required for access to the aid was lowered after protests from elected representatives (the government had previously set it at more than €325 per MWh). Above €180 per MWh, the State will pay 50% of the amount affected by the price hike, up to a ceiling finally reduced to €500 per MWh (compared with the €800 in force until now). According to the Ministry of Energy Transition, this aid should represent about 20% of the amount of the bill.
The second measure is to simplify an existing system that is far too complex and therefore underused. By the end of November, a one-stop shop will enable companies whose energy bills have increased by at least 50% by 2022 to obtain aid, with the possibility of requesting an advance payment. This window is mainly intended for medium-sized companies, but the others will also have access to it for gas. The existing ceilings will also be raised and a company will be able to receive up to €150 million in aid.
Both measures will have a budget of almost €12 billion.
Updates
The following updates to this measure have been made after it came into effect.
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25 March 2024
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In 2024, the French government will extend support measures for businesses to address high energy costs. Small professional consumers, including very small enterprises (TPEs), associations, and local authorities with contracts signed before June 30, 2023, will continue benefiting from a price cap of €280/MWh. The price cap will improve, covering 75% of bills (up from 50% in 2023). Public-funded organizations and local authorities remain eligible for unlimited aid.
Intermediate-sized enterprises (ETIs) will also receive targeted support. Eligible companies—those with energy costs exceeding 3% of 2021 turnover, negative or declining EBITDA, and contracts signed before June 30, 2023—can have 50% of electricity costs above €300/MWh covered, subject to a €2.25M group aid limit. These measures ensure businesses across all sectors receive essential energy cost relief.
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Use of measure
No data.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement as case not in social partner domain
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No involvement as case not in social partner domain
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
-
No involvement
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Main level of involvement: N/A
Involvement
No involvement.
Views and reactions
No data.
Sources
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16 January 2023: TPE/PME : les aides pour faire face à la hausse des prix de l’énergie
(www.economie.gouv.fr)
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25 March 2024: Aides énergies : les modalités de soutien aux consommateurs d’énergie en 2024
(www.economie.gouv.fr)
