Power Purchasing Act

Country / jurisdiction: France · Year: 2022 · Status: In force · Level: National · Type: Voluntary

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

Official source: https://www.vie-publique.fr/loi/285608-loi-pouvoir-dachat-16-aout-2022