The consequences of the war in Ukraine are manifold, and have a particular impact on the energy sector in France. In addition, some nuclear power plant reactors have been shut down for maintenance.
In this context, the government has introduced a series of regulatory measures to support businesses. This article presents the main support mechanisms. In parallel, it has also introduced mechanisms to secure energy supplies (link to article 2).
Energo" assistance (natural gas and electricity)
Decree no. 2022-967 of July 1, 2022 instituting aid to compensate for the increased cost of supplying natural gas and electricity to companies particularly affected by the economic and financial consequences of the war in Ukraine.
This aid (known as Aide Gaz/Electricité or Aide Energo) is aimed at companies resident in France for tax purposes and carrying on an economic activity that has been particularly affected by the economic and financial consequences of the war in Ukraine, and which meet the following eligibility criteria on the date the application for aid is submitted:
- They were created before December 1, 2021, are not in safeguard, receivership or liquidation proceedings and have no unpaid tax or social security debts on December 31, 2021;
- When incorporated as an association, they are subject to commercial taxes or employ at least one employee;
- They are major energy consumers (*);
- They have paid, for at least one month of the eligible period in question, a unit price for energy that has at least doubled compared with the unit price paid on average for the reference period between January 1, 2021 and December 31, 2021.
(*) energy-intensive companies: companies with energy expenditure (i.e. linked to energy purchases, including all taxes except deductible value-added tax) representing at least 3% of sales during the reference period.
Note: Companies whose main activity is the production of electricity or heat, or which are credit or financial institutions, are not eligible for this aid.
The application for assistance must be made on the professional space of the tax site (https://www.impots.gouv.fr):
- for the months of March, April and May 2022, between July 4 and December 31, 2022 ;
- for the months of June, July and August 2022, between October 3 and December 31, 2022 ;
- for September and October 2022, between November 15, 2022 and January 31, 2023 ;
- for November and December 2022, between January 16 and February 24, 2023.
The aid is calculated as follows
Note 1: For companies belonging to a group, aid ceilings are assessed at group level.
Note 2: Compliance with eligibility criteria relating to electricity and gas expenditure, EBITDA and eligible costs, must be verified and calculated by a trusted third party (chartered accountant or statutory auditor).
Tariff shield
The tariff shield set up for private customers also benefits businesses with fewer than 10 employees and sales of up to €2 million, which have an electricity meter with a capacity of less than 36 kVA and are subject to regulated tariffs.
This system limits the increase in electricity tariffs to a maximum of 15% from February 2023 (the limit was 4% in 2022).
For eligible companies, the mechanism is automatic and requires no specific action.
Electric shock absorber
A second scheme, announced on October 27, 2022, is designed to support companies unable to benefit from the "Energo" aid (see point 1) or the tariff shield (see point 3). Regulatory details have not yet been published.
The regulations governing these aid mechanisms have not yet been published. The information given in this article is subject to adjustment in the light of decisions taken by the French government and changes in the situation.