State announces new measures to support businesses and communities in the face of rising energy prices

To cover the different situations in 2023, three systems have been put in place:

• An “electricity shock absorber” for VSEs that do not benefit from the tariff shield, SMEs and all public authorities. Concretely, the State will cover 50% of the additional cost beyond a reference price of 325 euros per MWh. The lower price will appear directly on the bill, and financial compensation will be paid by the State to energy suppliers, via the public energy service charges.
• Amplified and simplified one-stop aids for the most energy-consuming companies. With regard to electricity, counter aid will be open to the most consuming companies and not covered by the electricity buffer (eg: ETI and large industrial companies). With regard to gas, the window will concern all businesses (eg farms and agri-food businesses).
• For communities, the extension and amplification of the safety net for the year 2023. This net is added to the "electricity shock absorber" and will also cover the additional costs linked to the price of gas. In total, between the electricity buffer and the safety net, the Government is deploying financial support of nearly 2,5 billion euros to help local authorities cope with rising energy prices. All of these measures represent an effort of nearly 12 billion euros in favor of companies, associations, local authorities and public establishments. The financing of these measures does not increase the public deficit:
  • more than 7 billion euros come from the recovery of exceptional margins from energy companies;
  • 3 billion euros are already provisioned for aid to the most consuming companies;
  • 1,5 billion euros is budgeted for the safety net for local authorities.

In addition to these measures, the Prime Minister recalled that the Energy Regulatory Commission (CRE) will publish a reference tariff schedule every week. The Government has also asked electricity suppliers to sign a charter by which they undertake to offer at least one offer to any customer who requests it. The State will also set up, by amendment to the finance bill for 2023, a public guarantee on the bank guarantees that are requested by suppliers from their customers when signing contracts.

Finally, the Government will continue to work hard at European level to set up, in Europe, a mechanism to decouple gas and electricity prices, and therefore reduce energy prices on the wholesale markets. .

Unprecedented measures in addition to existing measures

These measures are in addition to those, unprecedented, already put in place by the Government to protect individuals and small businesses (freezing of regulated gas prices, fuel discounts, reduction of the TICFE, etc.) and whose the extension was announced last September by the Government (the tariff shield mechanism on gas and electricity was extended in 2023, the gas price increase is limited to 15% on 1 January 2023 and that electricity at 15% on February 1, 2023).

Consult the speech of Mrs Élisabeth BORNE, Prime Minister, in by clicking here.