The European Commission has approved a €5bn French scheme to support energy-intensive companies that have been particularly hit by the recent increase in energy prices. The aid, which is open to energy-intensive corporations across sectors, with the exception of credit and financial institutions, will take the form of direct grants for additional costs due to severe increases in natural gas and electricity prices. In March 2022, the European Commission adopted the State aid Temporary Crisis Framework to enable European Union (EU) countries to use the flexibility foreseen under State aid rules to support the economy in the context of Russia's invasion of Ukraine.
The overall aid per beneficiary cannot exceed 30% of the eligible costs, up to a maximum of €2m. Energy-intensive enterprises that incur operating losses may receive further aid up to €25m and, if they are active in particularly affected sectors and sub-sectors, up to €50m. In addition, the overall aid for energy-intensive firms cannot exceed 50% of the eligible costs and 70% for those active in particularly affected sectors. The overall aid can cover a maximum of 80% of the losses incurred. Finally, public support will be granted no later than 31 December 2022.
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