Energy crisis

Bakers: what aid is available?

Publié le null - Directorate for Legal and Administrative Information (Prime Minister)

In view of the sharp rise in energy prices, various forms of aid are available to help electricity and gas-consuming companies, particularly in the highly affected bakery sector. Entrepreneur.Service-Public.fr presents you with all the aids and measures for bakers.

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Image 1Crédits: © santypan - Fotolia.com

The tariff shield

If you have an electric meter of a power less than 36 kilovolt-ampere (kVA), you can take advantage of the tariff shield. This arrangement is limited to 15% the increase in the price of gas as of January and the increase in the price of electricity as of February. This way you can avoid a 120% increase in your energy bills.

Only VSEs (companies with less than 10 employees with an annual turnover of less than €2 million) are eligible for this aid.

To get this help, you need to get closer to your energy supplier.

Tariff shield: extension to certain VSEs in 2023

The electric shock absorber

In force since 1er january 2023, the electric shock absorber is for bakers who cannot benefit from the tariff shield. This aid therefore concerns bakers with fewer than 250 employees and an electricity meter of one power exceeding 36 kilovolt amperes (kVA).

This arrangement applies to the average annual electricity price of a given contract (in €/MWh or €/kWh) excluding transmission costs of electricity in the grid and excluding taxes.

The electric shock absorber makes it possible to return, on half of the volumes of electricity consumed, the average annual electricity price at €180/MWh.

The maximum reduction of the unit price is fixed at €160/MWh on the total consumption. This aid relates to signed contracts and contracts under renewal.

The only step to take to benefit from this aid is to transmit to the electricity supplier a certificate of eligibility to the device.

You can obtain an estimate of the amount of the shock absorber that will be applied to your electricity bill using the simulator set up by impots.gouv.fr.

Infographie - Example of application of the electric shock absorber
Illustration - Example of application of the electric shock absorber
Illustration
Crédits : Ministry of Ecological Transition

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Please note

The price reduction is directly deducted from the electricity bill on your company.

Installation of the electric shock absorber on January 1, 2023

Gas and electricity aid

This support, which was introduced in July 2022, has been extended until December 31, 2023. She is for all bakers :

  • of which energy expenditure during the application period represents more than 3 % of their 2021 turnover ;
  • having undergone a an increase of at least 50 % in the energy price during the aid application period compared to the average price paid in 2021.

With this device, a bakery will be able to benefit from aid equal to 50 % of the difference between the 2021 invoice plus 50 % and the invoice for the month concerned (up to 70 % of 2021 consumption) and capped at EUR 4 million.

This support window for the payment of gas and electricity bills operates over eligible periods (September-October, November-December...).

You must make your request for help on the professional area of the site www.impots.gouv.fr.

This device is cumulable with the electric shock absorber from expenditure effected from January onwards.

Please note

A telephone number is available to answer all questions you have about the “gas and electricity” help: 0806,000,245 (free service + call price).

Example :

One baker, eligible for the aid of up to EUR 4 million and the electricity shock absorber, paid an average of EUR 71/Megawatt-hour (MWh) for his electricity in 2021 and had an electricity bill of EUR 7 500 in January 2021.

In case his invoice tripled in January 2023 with a price of 213 €/MWh on the month and an invoice of 22 500 €, he will benefit from €5 070 in aid for January 2023 (against € 3 957.5 of aid without the shock absorber).

The state, in this example, supports 34% the increase in the baker's bill (compared with 26% without the shock absorber). The invoice for January 2023 is then reduced to €17,429 with a price €165/MWh (against 18 562 € of invoice and a price of 176 €/MWh without the shock absorber).

Gas and electricity aid: extension until end 2023 and simplified eligibility criteriashttps://entreprendre.service-public.fr/actualites/A15735

Lower taxes on electricity and ARENH

The reduction of the internal tax on final electricity consumption (TICFE) will be reapplied in 2023. This concerns all bakeries. The level of the CTBT, also known as the contribution to the public electricity service, has been set at €0.5 per megawatt hour (MWh) which is the minimum European legal requirement.

This aid represents €8.4 billion in support for the companies for 2022 and 2023.

You can also take advantage of the ARENH mechanism (Regulated access to historic nuclear electricity). It enables alternative energy suppliers to obtain electricity from EDF by benefiting from a fixed price of 42 €/MWh up to 100 terawatt hours (TWh) per year (the current limit is 120 TWh per year). They therefore avoid market prices. This mechanism therefore makes it possible to curb the increase in electricity prices for all bakers.

The electricity tax reduction (TICFE) and ARENH extended for 2023

The energy “Checklist”

The purpose of this document is to enable the employer to better target the important points of an energy supply contract and to improve relations with their supplier in a context of rising energy prices. Available on the website of the Ombudsman for companies, this document is regularly updated.

It also lists the energy-related aid to which companies are entitled.

This “ Checklist includes a total of 10 questions.

The energy checklist, a new tool for supporting companies

Government Announcements

In view of the current situation of rising electricity and gas prices, new announcements have been made by the Government to help bakers:

  • possibility for bakers to request the deferral of payment of their taxes and social contributions in order to relieve their cash flow (does not concern VAT, ancillary taxes and repayment of withholding tax). You can ask the Urssaf for a delay in the payment of your contributions;
  • VSEs will not pay more than 280 €/MWh average electricity in 2023. This aid is intended for small and medium-sized enterprises that have renewed their electricity supply contracts in the second half of 2022 and do not benefit from the regulated sales tariff. To obtain it, you will have to fill in a form available on impots.gouv.fr indicating that they would like to benefit from the specific tariff for VSEs before transmitting it to the electricity supplier.
  • possibility of to terminate at no cost energy contracts which have become too expensive in order to renegotiate them at lower prices. This measure, intended exclusively for bakers, will be applied ‘on a case-by-case basis’;
  • until at least summer 2023, a spreading of energy bills may be offered to you by your energy provider. That spread over several months relates to the invoices for the first months of the year.
    In addition, the Government encourages energy suppliers to provide more information and support to companies that can benefit from the measures put in place to cope with the sharp rise in energy prices. This will be done by telephone, mail or email and will cover the reasons for the increase in energy bills and the aids at their disposal.

Please note

The detailed rules for the operation of these aid measures will shortly be determined by regulation.

Support from the departmental advisor

Bakers who encounter difficulties can also be accompanied by a departmental advisor when they come out of crisis. Its role is to offer you an adapted and operational solution (social and fiscal debt reduction, State loan...). There is a list of departmental advisers emerging from crisis.

Extension of the post-crisis support plan for companies

Summary of available aid

Help

Device

Tariff shield

Applies to TPEs having an electric meter of a power less than 36 kilovolt-ampere (kVA). This arrangement is limited to 15% the increase in the price of gas as of January and the increase in the price of electricity as of February.

Electrical shock absorber

Applies to bakers with less than 250 employees with an electricity meter of one power exceeding 36 kVA.

Applies to the average annual electricity price of a given contract excluding transmission costs of electricity in the network and excluding taxes. Bring back, on half of the volumes of electricity consumed, the average annual electricity price at €180/MWh.

Gas and electricity aid

Addresses all bakers. Enables you to receive aid equal to 50 % of the difference between the 2021 invoice plus 50 % and the relevant invoice (up to 70 % of 2021 consumption) and capped at EUR 4 million.

This aid is cumulable with the electric shock absorber from expenditure effected from January onwards.

Electricity Tax Cut and ARENH

Decrease of the CTBT, also known as contribution to the public electricity service, to €0.5 per megawatt hour (MWh) which is the minimum European legal requirement.

ARENH allows alternative energy suppliers to source electricity from EDF by benefiting from a fixed price of 42 €/MWh up to 100 terawatt hours (TWh) per year.

Energy Checklist

Informs about the important points of an energy supply contract and aims to improve relations with the supplier in a context of rising energy prices.

Government Announcements

Possibility for bakers to request deferral of payment of their taxes and social security contributions.

VSEs will not pay more than 280 €/MWh average electricity in 2023.

Possibility of canceling energy contracts free of charge in order to renegotiate them at better prices.

Spreading energy bills can be offered by your energy supplier. That spread over several months relates to the invoices for the first months of the year.

Support from the departmental advisor

Propose a suitable and operational solution (social and fiscal debt reduction, State loan, etc.).