The Aid Windows

Market Insights :: Market Updates :: France

Following the publication of the 2022-1575 Decree of December 16 2022 (which amended the 2022-967 Decree of July 1 2022), the present feature aims to summarize the updates introduced by the French Government to the aid mechanism known as: The Aid Windows.

REMINDER - March to August 2022: An aid window for the payment of electricity and natural gas invoices (introduced in July 2022 as part of the Resilience Scheme)

For the periods of March to May 2022, and June to August 2022, companies that meet the following conditions are eligible for this aid:

• Their main activity isn’t electricity or heat production or the operating of lending and/or financial institutions;
• Their gas and/or electricity purchases in 2021 amounted to at least 3% or more of the turnover in that year;
• They must have suffered, in one of the months of the eligible period, a doubling in the price of their gas and/or electricity compared to the average price they themselves recorded over the entire 2021 calendar year.

For the periods March to May 2022, and June to August 2022 three aid schemes were introduced:

• Scheme 1: capped at 2M €, for companies having experienced a 30% drop in gross operating profit (EBITDA) compared to 2021 or a negative EBITDA; aid is set as 30% of total eligible costs;
• Scheme 2: capped at 25M € for companies with a negative EBITDA and an increase in eligible costs totalling at least 50% of the absolute value of the EBITDA; aid is set at 50% of the eligible costs within the limit of 80% of the absolute value of the EBITDA;
• Scheme 3: capped at 50M € for companies listed in Annex 1 of this decree, with a negative EBITDA and an increase in eligible costs amounting to at least 50% of the absolute value of the EBITDA; the aid is equal to 70% of the eligible costs within the limit of 80% of the absolute value of the EBITDA.

For the above period of time, the two windows to apply for aid that had existed have since elapsed as of January 1 2023. However, the purchases of heat and cold produced from natural gas or electricity, which were made eligible from September 2022, are still open and were even extended reaching back as far as costs in March 2022. A refund of these expenses over the period from March to August 2022 would still be possible. Such an application would need to be made on the tax platform between January 16 2023 and December 31 2023.

From September 2022 to December 2023: A simplified aid window for the payment of electricity, natural gas, heat and cold invoices.

All companies can apply for this program until 31 December 2022, with individual aid ranging up to 4M €. It should be noted that from this period onwards, purchases of heat and cold generated via the use of natural gas or electricity are now eligible. This aid can be claimed on the following website -

https://www.impots.gouv.fr/professionnel

For claims relating to the months of September and October 2022, applications opened on 19 November. The window for the following period (November - December 2022) will be in early 2023.

The criteria for eligibility were simplified. From now on, in order to get aid:

• The energy price during the period applied for (September/October 2022 to start with) must have increased by 50% compared with the average price the applicant paid in 2021;
• Energy expenditure during the application period must be greater than 3% of the 2021 turnover (e.g. if you are applying for aid for the period September/October 2022, your energy expenditure over this period must represent more than 3% of your September/October 2021 turnover. Companies have the choice of comparing their energy invoices to the September/October 2021 turnover or to the prorated 2021 turnover).

In order to determine the amount of aid you can expect, determine the amount invoiced in the same period in 2021 and increase it by 50%. Aid will amount to 50% of the difference between that amount and the amount invoiced in 2022, within the limit of 70% of the 2021 cost. For companies with higher energy expenditure, enhanced support can reach 50M € (i), and up to 150M € for sectors at risk of carbon leakage (ii). The criteria are:

• The energy price during the application period (September and/or October 2022) must have increased by 50% compared with the average price paid in 2021;
• Energy expenditure in 2021 represented at least 3% of turnover in that year OR energy expenditure in the first half of 2022 represented at least 6% of turnover in that six-month period;
• The Gross Operating Profit is either negative or down by 40% over the comparable span of time.

(i) Scheme 1: capped at 50M €. Determine the amount invoiced in the same period in 2021 and increase it by 50%. Aid will amount to 65% of the difference between that amount and the amount invoiced in 2022, within the limit of 70% of the 2021 cost.

(ii) Scheme 2: capped at 150M €. Determine the amount invoiced in the same period in 2021 and increase it by 50%. Aid will amount to 65% of the difference between that amount and the amount invoiced in 2022, within the limit of 70% of the 2021 cost.

Companies belonging to a larger group will see the aid received by every entity at the group level count towards their own maximum cap on aid. Furthermore, the reference period used to determine whether the aid received has reached the maximum cap extends from March 1 2022 to December 31 2023.

Eligibility timetable by aid window

For each bi-monthly period of energy consumption, we provide you with the timetable for the submission of applications for assistance:

More: Market Updates, Electricity, Energy Regulation, France Energy Aid 2022/2023, Natural Gas

Related Links

• Simulate and Claim Aid Online