Power Purchasing Act
In an effort to lessen the impact of inflation, notably the effect of energy price rise, the French government implemented end 2022 a series of measures under the Purchasing Power Act.
Those related to the energy sector encompass:
a- Energy security policies:
- setting of of a national gas storage filling trajectory
- defining rules enabling State control over gas-fired power stations (for up to 4 years)
- accelerating the installation of a floating LNG terminal off Le Havre
- defining a legal framework for national load-shedding implementation and the prohibition of all luminous advertising in the event of a threat to the security of electricity supply
- defining rules (notably a raise in GHG limits) enabling the extended use or reactivation of the last two domestic coal-fired power stations: Cordemais, still in operation, and Saint-Avold which was closed in March 2022 and could restart temporarily
- simplifying standards applicable to biogas projects
b- Consumer affordability policies:
- freezing of the ceiling for the ARENH tariff, which applies to non-historic energy suppliers when purchasing EDF nuclear power production, at 120 TWh per year until 2025. An increase to EUR 49.5 per MWh is planned for 2023.
- setting up leeway provisions for electricity and gas bill payment to enable households in payment default situation between 1 April and 31 October.
- extension of the cap in gas and electricity prices ("Bouclier tarifaire") until end of 2022.
- increasing the 18 cents petrol discount to 30 cents per litre in September and October 2022, and setting it at 10 cents per litre in November and December
- extending the state guarantee on loans for companies impacted by the energy crisis and invasion of Ukraine
- providing an emergency aid for oil-heated households
- doubling the cap on exemptions from employers' fuel premium contributions to EUR 400 a year per employee
- creating an incentive for employers to cover 75% of the transport subscription of their employees (while the existing legal requirement at 50%)
- enabling the combination of the different support schemes related to transports
- easing until end of 2022 the access criteria to the "bicycle bonus" subsidy for purchasing an electric bicycle
- introducing a tax benefit for carpooling expenses
c- Policy impact monitoring and consumer information
- assessing the effectiveness of the tariff shield on local authorities
- ensuring better consumer information on rising gas and electricity prices
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