Gas and electricity aid: the application deadline is extended

As you know, the French government’s financial aid was introduced a few months ago for companies that consume a lot of gas and electricity, and which are therefore very much impacted by the rise in energy prices caused by the war in Ukraine. This aid, which can be applied for since July 4, is intended to compensate for the additional costs of gas and electricity expenses borne by these companies.

The aid, which is open to all sectors of activity and regardless of the size of the company, is more specifically designed for those companies:
- whose purchases of gas and/or electricity represented at least 3% of their turnover in 2021;
- and which have experienced a doubling of the purchase price of electricity and/or gas over the quarterly period March-April-May 2022 and/or June-July-August 2022 compared to an average price in 2021.

Clarification: the aid also concerns non-profit organizations that are subject to commercial taxes and that employ at least one employee.

Until December 31, 2022

Initially, it was planned that applications to receive aid for the period March-April-May 2022 had to be submitted before August 18, 2022 and those for the period June-July-August 2022 by October 30, 2022 at the latest.

As recently announced by the Minister of Economy and Finance, the deadline to submit applications for the periods from March to May 2022 and from June to August 2022 is officially extended until December 31, 2022. This extension is intended to allow the companies concerned to gather all the necessary documents and have them certified by an accounting firm or a statutory auditor.

Aid soon to be expanded

Given the current tensions in the gas and electricity markets, the Minister of Economy and Finance recently announced that the “gas and electricity” aid would be extended.

Thus, initially intended for the additional costs of gas and electricity expenditure incurred during the period from March 1st to August 31, 2022, the aid had to be extended for this period until December 31, 2022.

In addition, granting conditions are simplified to allow more companies to benefit from it. Thus, the condition, currently required for certain companies, to suffer a decrease of at least 30% in their gross operating surplus (EBITDA) compared to 2021 is abandoned. Now, any decrease of the companies’ EBITDA should be enough for them to receive the aid. To be continued...