France pledges billion euros to help small firms with energy bills

THE French government will provide several billion euros to help small and mid-sized companies that are struggling to pay soaring energy bills, Finance Minister Bruno Le Maire said on Thursday (Oct 27).

The support will come in the form of an electricity guarantee based on a price corridor, with a floor of 325 euros (S$460) per megawatt. The upper limit is still being discussed, Le Maire said in an interview with BFM Business television.

“This will very substantially reduce the bill for all small and medium-sized firms and it will give them the visibility they want from us,” the minister said.

The measure will be targeted at companies with no more than 250 employees and will cover a quarter of their bills, with half still based on existing regulated limits, leaving only 25 per cent still exposed to markets. Businesses have been “terrified” by prices reaching as much as 1,200 euros per megawatt, according to Le Maire.

Around 1.5 million very small companies will continue to benefit from a reduced tariff, like households, with rises limited to 15 per cent, he said.

French Prime Minister Elisabeth Borne is due to present details of the government’s measures to shield businesses from soaring power costs later on Thursday. BLOOMBERG