COPY LINK

ENERGY

Cold water, 19C heating and cash bonuses: How France will cut energy use this winter

Lowered heating, speed limits, cash bonuses and lighting cuts - the French government has unveiled its 'energy sobriety' plan to cut France's energy use by 10 percent and avoid blackouts this winter.

Published: 6 October 2022 13:30 CEST
Updated: 9 October 2022 07:52 CEST

Cold water, 19C heating and cash bonuses: How France will cut energy use this winter

Heating will be limited to 19C in public buildings. Photo by Ina FASSBENDER / AFP

Prime Minister Elisabeth Borne unveiled the long-awaited plan on Thursday, outlining the cuts that will allow France to make it through the winter without Russian gas.

The plan for sobriété enérgetique (energy sobriety) will also become part of France’s longer-term commitment to reducing its energy use by 30 percent by 2030, in order to combat climate change.

The plan is divided into three sections – measures for government offices and public buildings which are compulsory, measures for businesses which are voluntary but which businesses are expected to sign up to on a sector basis and measures that households and private individuals can take, which are entirely voluntary.

Here are the main measures;

Government

Government officials and politicians are expected to “be exemplary”, which is why you’re likely to see a lot more politicians modelling knitwear this winter, to show how they have turned down their office heating.

Among the measures for government offices are;

Heating – government offices will not be heated to above 19C, lowered to 18C on days when the EcoWatt app (which shows the risk of energy shortages) is on a ‘red’ day – find out how EcoWatt works HERE. The heating will be turned down at night.

Dress code – dress codes are relaxed for public sector employees to allow them to dress warmly for work.

Remote working – working from home – télétravail – became a fixture during the pandemic and looks like it might be coming back if you work for the government. Government departments will encourage home-working with an increase in the remote-working allowance for public servants.

Travel – government agents who need to travel for work should use public transport rather than the car. If this is not possible, they should not exceed 110km/h when driving on the autoroute, in order to save around 20 percent of fuel (emergency workers are exempt from this requirement). These tactics are encouraged – but not compulsory – for private employees and individuals.

Turn off hot water – office managers are asked to turn off hot water supplies, except when it is essential, such as for showers. Employees will therefore need to wash their hands in cold water, and boil a kettle if they want a tea or coffee.

Building fund – funds will be available to make buildings more energy efficient.

Public spaces

Local authorities are also included in the plan, for both their own offices and for the public buildings that they manage, such as swimming pools and leisure centres. Buildings such as hospitals, nursing homes or anywhere that houses vulnerable people are exempt from these measures.

Pools and gyms – gyms must lower their standard temperatures by 2C, while the water in swimming pools will be 1C colder.

Lighting – lighting including street lights, lighting of public spaces and illuminating buildings should be reduced by turning off lights earlier, reducing light intensity and switching to LED lights. Many local authorities had already announced cuts to lighting on public buildings, including the city of Paris where the lights on the Eiffel Tower will be turned off one hour earlier.

Sports stadiums – sports clubs – both professional and amateur – are asked to reduce the time that pitches are floodlit and stadiums lit up before and after matches by 50 percent for daytime matches and 30 percent for evening games.

Ski resorts – ski resorts will slow the speed of chair lifts in order to save energy but the lifts themselves as well as other ski infrastructure will still be running.

Offices – local and national government are asked to save office heating by grouping as many offices as possible into a single building.

Businesses

Businesses are asked to sign up to energy commitments on a voluntary basis. The government is creating a brand called Les entreprises s’engagent (Companies that are committed) that companies who sign up to and implement measures will be awarded. Many businesses have already begun to make some of the outlined changes.

Lower office heating – Offices should not be heated to more than 19C and the temperature should be dropped to 16C at night. If the office is to be closed for three days or more, heating should be lowered to 8C while staff are away. Companies are also asked to move by up to 15 days the switch-on and switch-off dates in autumn and spring for heating, although this will depend on the weather.

Hotels, bars and restaurants – these and other businesses that welcome the public will also be asked to sign up for the 19C maximum for heating, while retail stores will be expected to go for a maximum of 17C.

Lighting – companies should turn off interior lighting as soon as an office, store or other workplace is closed. Exterior lighting should be reduced, including for advertising, and should be turned off by 1am at the latest.

Travel – businesses should reduce unnecessary travel by employees and use public transport wherever possible for employees who do have to travel.

Households

These measures are advisory only, but will be accompanied by a publicity campaign – named Chaque geste compte (every action counts) encouraging individuals to do their bit and help to reduce their energy use.

Temperature – lowering the temperature in your home by just 1C can save around seven percent of your energy use. It is recommended to have the living spaces no warmer than 19C, with bedrooms at 17C. This is voluntary, and vulnerable people such as the elderly or those with a disability may need to have the heating at a higher setting.

Appliances – a range of energy-saving tips are suggested, from turning off lights in rooms that are not used to not leaving appliances on standby and unplugging appliances if you are going away.

Carpooling – in order to encourage car-sharing, there will be bonuses for people who sign up to car-share schemes.

Cash bonuses – households that manage to reduce their consumption this winter will be in line for a bonus sobriété (sobriety bonus) from their gas or electricity company. Several companies have already announced bonuses of up to €120 for households that make significant cuts.

Heat pumps – homeowners will be able to get grants of up to €9,000 to switch a gas boiler to a heat pump, through the existing Ma PrimeRenov scheme.

Energy forecast – TV channels will start to broadcast the ‘energy forecast’ in a similar way to the weather forecast, showing how high the risk of energy shortages are in the days ahead.

Member comments

Become a Member to leave a comment.

URSSAF: What is it, how it works, and how it affects you

Unions de Recouvrement des Cotisations de Sécurité Sociale et d’Allocations Familiales – more usually known, because that’s a mouthful, by the acronym Urssaf – are the administrators who collect social security contributions that fund a large part of France’s labyrinthine social security system, including, notably, health insurance.

It is responsible for collecting some €534.4 billion from 9.8 million users every year to help fund social security in France.

If you’re an employee in France, you will probably have nothing directly to do with Urssaf, because – for the most part – dealing with it will fall into the realms of Somebody Else’s Problem (ie your employer).

But if you are freelance, a contractor or set up your own business you will almost definitely have to deal with Urssaf.

Type of regime

Many people working for themselves in France use the simplified Micro Entrepreneur regime – often still referred to as auto entrepreneur – which sets up a basic sole trader-style business.

Its advantage is (relative) simplicity but it has limits on earnings as well as other limitations like being able to write off business expenses.

Micro-entrepreneur: How to set up as a small business in France

Other options for freelancers or sole traders include the Entrepreneur individuel à responsabilité limitée (EIRL – basically a limited liability sole trader); Entreprise unipersonnelle à responsabilité limitée (EURL – another sole trader option), Société par Actions Simplifiée Unipersonnelle (SASU); or Société à Responsibilité Limitée (SARL).

These allow for higher earnings but are more complicated and may require an accountant to set up.

If you start off as a micro-entrepreneur but then your earnings go over the threshold you can switch to another regime without attracting a penalty.

How to register

These days the whole registering a business thing can be done online. For a simple micro enterprise, you can create an account on autoentrepreneur.urssaf.fr, then give details of the business you intend to run, and your social security numbers.

If you’re looking to set-up a more complex business structure such as a EURL, SARL, SASU, or SAS, you should start with the portail e-procédures at procedures.inpi.fr.

You must then send off the declaration, which is registered with the relevant Centre de formalités des entreprises;

For commercial businesses eg shops or bars, this is the Chambre de commerce et d’industrie;
For artisans, craftspeople, tradespeople and some other commercial businesses, it is with the chambre de métiers et de l’artisanat;
For professions libérales – including, for example, freelance journalists – it is with Urssaf.

Within 15 days of registration, you should receive your business registration number, known as the SIRET number.

Notice that you have been signed up to the relevant social security regime should follow in a few weeks.

Since 2020, all independent workers belong to the Assurance Maladie health regime, and a few professionnels libéraux are signed up to the standard Assurance retraite for their pensions.

How much does it cost to set up a business?

That depends on your business. Setting up as a micro entrepreneur (auto entrepreneur) costs nothing administratively and is the simplest way for freelancers to set up for themselves.

Technically speaking it is a tax status rather than a business structure.

Then what?

Once you’re up and running, the most regular contact with Urssaf should be when you file your earnings online, which – for micro entrepreneurs – can be done monthly or quarterly using the auto entrepreneur website.

You will then be informed how much you owe in cotisations, (social security contributions) which will be taken out of your bank account around a month later.

If you have a French-incorporated business, such as EURL, SARL, SAS or SASU, you will use URSSAF’s main website www.urssaf.fr, or get your accountant to do so. Some business set-ups in France require you to use an accountant.

Banks

Note that you will need to set up a dedicated bank account for your business. As a micro entrepreneur, despite claims from banks, it does not have to be a business account (which attract larger fees). But it should be separate from your personal bank account, and just used to pay your charges, for any business expenses (which you cannot claim for, if you’re a micro entrepreneur).

Other business regimes, such as the Entrepreneur individuel à responsabilité limitée (EIRL – basically a limited liability sole trader); Entreprise unipersonnelle à responsabilité limitée (EURL – another sole trader option), Société par Actions Simplifiée Unipersonnelle (SASU); or Société à Responsibilité Limitée (SARL), have certain advantages on allowable earnings, compared to the very basic micro-entrepreneur regime – but will incur a sliding scale of charges on set-up, and require different book-keeping and accounting systems. Some will also require you to be registered for VAT.

Do I need an accountant?

This is really a personal choice – the micro-entrepreneur regime is designed to be simple and to be used by individuals, but some people still prefer to use an accountant.

The business structures for higher earners are a little more complicated and may require an accountant to set up. Most people use accountants if they are within these structures, unless they are confident in both their French and their book-keeping abailities.

If you have an accountant you can nominate them to be your representative in any dealings with Urssaf, although note that you are still responsible for any fees and charges, even if they are incurred by your accountant making a mistake.

Okay — how much do you pay in charges?

For micro-entrepreneurs, social charges can be paid monthly or quarterly. They are calculated as a fixed percentage of your earnings, depending on the type of work.

Rates are 12.8 percent for the sale of goods, 22 percent for artisanal and commercial services, 22 percent for professions libérales attached to the standard Assurance Retraite for retirement, and 22.2 percent for a small number of professions libérales attached to Cipav.

A levy of 0.1 percent to 0.3 percent is also charged. It goes to the CPF fund giving all workers the right to a financial contribution for training.

Note, micro-entrepreneurs are limited in the amount they can earn: for business activities and the supply of accommodation (hotels, bed and breakfasts, rural cottages classified as furnished apartments, furnished apartments), the threshold is €188,700.

For service and professional activities, the threshold is €77,700.

Micro entrepreneurs will be obliged to step up to another business regime if they break these earnings thresholds.

For other business types, these maximum earnings thresholds do not exist, but bosses will have other requirements, for example, they may need to use the services of an accountant, and will have to be audited once they cross a certain earnings threshold.

Taxes

It’s important to note that Urssaf deductions are only part of the story – there are also other taxes to consider.

Personal income tax is covered in the annual income tax declaration, while businesses taxes fall under a range of tax regimes, depending on your type of business.

Commercial, industrial, or manual/trades/crafts businesses fall under the Bénéfices Industriels et Commerciaux (BIC) system. Professional businesses fall under the Bénéfices non Commerciaux (BNC) system. Agricultural businesses use the Bénéfices Agricole (BA) system.

Don’t forget, either, the Contribution Fonciere des Entreprises (CFE) property levy, a local tax payable by any company or self-employed person earning more than €5,000 per year, even if they conduct their business at home, at the kitchen table. This one is due every December.

What if I have a problem?

You can contact Urssaf staff online via the website, or arrange an appointment for a face to face meeting at their offices, if you prefer. Contrary to popular opinion, they’re there to help you.

Urssaf, in the past, had a poor reputation. But, as with all French bureaucracy, it’s better to work with it rather than try to fight or resent it.

SHOW COMMENTS

Url copied to clipboard!