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Policies

Power Purchasing Act

Source: International Energy Agency
Last updated: 19 May 2023

In an effort to lessen the impact of inflation, notably the effect of energy price rise, the French government implemented at the end of 2022 a series of measures under the Purchasing Power Act.
Those related to the energy sector encompass: 

a- Energy security policies:

  • setting 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 for 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 transport
  • easing until end of 2022 the access criteria to the "bicycle bonus" subsidy for purchasing an electric bicycle
  • introducing a financial incentive for regular 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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