As a result of the skyrocketing prices of their electricity bills, an increasing number of bakeries that are not covered by the tariff shield are finding that they are unable to continue operating. And they threaten to add costs to the prices of the things they sell if they are not paid.
Their current financial status is becoming more and more unsustainable. The energy crisis is having an impact on a wide range of industries, many of which are witnessing an increase in the amount of money they spend on their gas and electricity bills. However, the industry of artisan bakers is one of the industries that is suffering particularly steep price increases. According to the National Confederation of French Bakery and Pastry (CNBPF), “if the price of energy is multiplied by three, the baker would have to increase his prices by 10 to 15% to keep his activity afloat; if it is multiplied by five, it would almost have to show an increase of 30%” (If the price of energy is multiplied by three, the baker would have to increase his prices by 10 to 15% to keep his activity afloat; if it is
In light of the precarious nature of the situation, the government has decided to take control of the situation itself. Olivia Grégoire, the Minister Delegate in Charge of Small and Medium-Sized Enterprises, was a Guest of France Info on Friday. She noted that she will receive the representative organizations of bakers “the following week to find answers jointly. According to the member of the administration, “more than 70 percent of our corporations, our SMEs, and our VSEs fully pass on the price of the energy rise to consumer goods.”
In addition to the spike in the cost of raw materials that is linked to the jump in inflation, certain bakeries are penalized by the absence of a price shield, which adds to their overall financial burden. Which ones exactly? Signs that feature a power meter that registers more than 36 kilovolt-amperes (KVA) are not considered to be within the scope of this project. “According to Dominique Attract, president of the CNBPF, who was speaking with BFMBusiness earlier this week, “80 percent of bakeries with less than 10 employees and less than 2 million euros in revenue are not covered by the tariff shield.”
There will be no expansion of the tariff shield in a general sense.
You ought to be aware that this is the case with eighty percent of bakeries. Because of the excessive amount of energy that each employee uses, they are ineligible for protection under the government system. “According to the CNBPF, the power on the meter required for medium-sized bakeries (those with six to eight employees) is more in the area of 72 KVA on average. Olivia Grégoire claims that the government has implemented “a gadget with tight mesh” and “will extend the meshes of the net so that they (bakeries) can fit inside.”
Olivia Grégoire is unwilling to expand the price shield to all firms because doing so “would number in the tens of billions of dollars,” even though the Minister freely concedes that the price of a baguette may sometimes approach 1.20 euros in certain locations. Another reason given by the Minister of Bercy is that the measure needs to be taken “would assist small and medium-sized enterprises (SMEs) or very small and medium-sized enterprises (VSEs) that do not necessarily require assistance “Before adding that the executive wants to target and avoid doing anything and spending anyhow”. Baguette prices are expected to reach 1.50 euros within the next few months, according to projections provided by the industry.
