The executive will “guarantee a reasonable price” of electricity to local authorities and small and medium-sized companies, under terms the government will unveil on Friday, Emmanuel Macron announced on France 2 on Wednesday night.
This amortization mechanism will also affect very small “energy intensive” businesses excluded from the 15% price increase capping mechanism, such as bakeries, for example. At the moment, the VSE (very small companies), which have less than ten employees and invoice less than two million euros, can take advantage of the regulated electricity sale rate, whose increase the Government has limited to 15% in 2023.
Aid of up to several “tens of millions of euros”
In addition, “for medium-sized companies and large groups, we are going to set up a help desk with advance payments starting in the coming weeks,” added Emmanuel Macron. An increase in aid tickets is also on the table, up to several “tens of millions of euros” for this type of business.
Currently, companies whose energy bill represents at least 3% of their turnover in 2021 can apply for aid with maximum amounts of 2, 25 or 50 million euros.
“Why your prices are rising is because the cost of production is increasing for, for example, your farmers, for those who then process your food,” he explained to justify the establishment of these aids. In September, inflation slowed to 5.6% in one year, a level that remains historically high.
Source: BFM TV
