the State will bear part of the bills of small businesses and communities, announces Elisabeth Borne

For several weeks, employers’ organizations and communities have been calling for new aid in the face of skyrocketing energy bills. Thursday October 27, during a press conference in Matignon, the Prime Minister, Elisabeth Borne, the Minister of the Economy Bruno Le Maire, the Minister of Territorial Cohesion Christophe Béchu as well as the Minister of Energy Transition Agnès Pannier -Runacher, announced three new devices to contain energy prices for this audience:

  • The first, baptized “electric damper”will aim to cover part of the electricity bill for “VSEs that do not benefit from the tariff shield, SMEs, associations [de plus de 10 salariés]local authorities and public establishments” (universities, hospitals, etc.). It will concern ” the contracts [professionnels] relating to 2023, including those already signed” clarified Bruno Le Maire. This damper must allow “to reduce the electricity bill of VSEs and SMEs by 120 euros per megawatt hour on average”, he added. This mechanism, “set up for one year and effective from January 1”, according to Agnès Pannier-Runacher, will be automatically deducted from the company’s electricity bill. It will only be triggered when the price per kilowatt hour is between 325 euros and 800 euros, “which will prevent the state budget from being exposed to market volatility” added Bruno Le Maire.
  • The government will also “simplify and amplify the targeted aid, already in force for companies”in particular larger sizes and via the simplification of aid application counters from 15 November.
  • With regard to local authorities, he will present an amendment to the finance bill providing “the extension and amplification of the safety net for the year 2023”.

According to Matignon, these new measures bring the government’s total effort to “12 billion euros” to relieve the budgets of businesses and communities, heavily burdened by rising energy costs.

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Aid financed thanks to an exceptional tax

The government seeks above all to obtain a structural reduction in energy prices on a European scale, but the Prime Minister has specified that it is “essential to give visibility to all the actors”.

“Our businesses and our communities could not wait [d’éventuels mécanismes européens]she added. Also, to lower their bills, we have decided to redistribute to them all of the revenue from the exceptional taxation of energy companies introduced in the finance bill”.

Three billion also come from an envelope already provisioned for existing aid and which has been used very little. Finally, the remaining 1.5 billion euros have been budgeted for the safety net intended for local authorities. This new aid will therefore not widen the deficit, according to Mme Thick headed.

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The World with AFP

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