Factsheet for measure
FR-2023-1/3104
–
Updated
– measures in France
Limiting the price of electricity to €280/MW
Limitation du prix de l'électricité à 280 € / MW
Background information
On 6 January 2023, the government secured a guarantee from electricity suppliers that all very small companies would not pay more than €280/MWh on average for electricity in 2023. This aid is available to very small companies that have renewed their electricity supply contract in the second half of 2022 and that do not benefit from the regulated sales rate (a rate set by the State). It has also maintain a "tariff shield" and created an "electricity cushion".
Content of measure
In order to benefit from the €280 cap, the business owner must complete a certificate stating that they wish to renegotiate their electricity contract. This form must then be returned to the electricity supplier. This guaranteed tariff is applicable from the January 2023 invoice and for the whole of 2023. Other schemes have been put in place to help very small businesses:
The Tariff Shield
The
Tariff Shield (see related case in the database)
is a scheme designed to limit the rise in electricity prices to 4% in 2022, which applies also for citizen. To benefit from the tariff shield on energy bills in 2022, the company must have:
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less than 10 employees
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a turnover of less than €2 million
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an electricity meter with a capacity of less than 36 kVA.
The tariff shield was modified in 2023 to limit the increase in electricity prices to 15% from 1 February 2023. This cap prevents a 120% increase in energy bills for businesses. For electricity, it has been extended until 31 December 2023 (and ended for gas in June 2023).
Electricity cushion
The electricity cushion came into force on 1 January 2023. It protects companies that have signed higher energy contracts, with a higher unit aid ceiling. This ceiling is defined by an indicator on the invoices. If the company has a unit price for the energy portion of €350/MWh (€0.35/kWh), the electricity buffer will cover around 20% of the total electricity bill. Companies are eligible under certain conditions:
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be a very small business or SME with fewer than 250 employees
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be a company that is not eligible for the Tariff Shield
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Have an electricity meter with a capacity of more than 36 kVA
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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The French government will continue supporting professional consumers, including SMEs and entities regardless of their status, with contracts signed before June 30, 2023, still valid in 2024. The electricity energy cap will be enhanced to better protect high-price contracts, increasing bill coverage from 50% to 75%, removing the cap on compensation above €500/MWh, and raising the activation threshold to €250/MWh. Local authorities, their groups, and public-funded structures will also remain eligible for this aid in 2024, without size restrictions, as in 2023.
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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
Company / Companies
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Companies
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:
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No involvement
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Main level of involvement: N/A
Involvement
No involvement.
Views and reactions
No information.
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)
