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-2023-1/3104 – measures in France
|Country||France , applies nationwide|
|Time period||Temporary, 01 January 2023 – 31 December 2023|
|Context||War in Ukraine|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Frédéric Turlan (IRshare) and Eurofound|
|Measure added||20 February 2023 (updated 25 July 2023)|
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".
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:
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).
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:
|Does not apply to workers||
One person or microenterprises
|Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement as case not in social partner domain||No involvement as case not in social partner domain|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2023), Limiting the price of electricity to €280/MW, measure FR-2023-1/3104 (measures in France), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FR-2023-1_3104.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.