Elisabeth Borne’s press conference was especially anticipated in the context of the highest rise in gas and electricity prices. In particular, the Prime Minister prepared a report on the actions carried out and presented the next steps to reduce the rise in energy prices in France.
• The tariff shield extended in 2023
Almost a year after its launch in the fall of 2021, the tariff shield will be extended until 2023. “France is the country that has best protected households in Europe with the tariff shield, indicated Elisabeth Borne. Without government action, prices would multiply by 2.2 at the beginning of 2023.” The head of government mentioned an estimated average annual gas bill of around 1,530 euros and 1,734 euros of electricity in 2022. These figures remain well below of those observed among the European neighbours.
The increase in energy prices will be limited to 15% for gas in January and for electricity in February compared to more than 100% without state intervention. This difference between the controlled price and the market price will not be transferred to the energy bill from 2024 and will be borne by the State. Specifically, the additional monthly cost will be 25 euros for homes with gas heating and 20 euros for those using electric heating instead of 200 euros without the tariff shield, estimated the Prime Minister.
• Energy vouchers from 100 to 200 euros
The other key measure announced at this press conference refers to specific support to help the most modest. Thus, before the end of the year, exceptional energy checks will be paid to the 12 million most modest households. Its value will range between 100 and 200 euros depending on household income. These energy controls will cost the state budget 1,800 million euros.
• Four major European measures
The Prime Minister also mentioned the four main measures implemented at the European level. The first is the establishment of a ceiling on the price of gas to “prevent the price of gas in Europe from deviating from what is practiced in the rest of the world”. The electricity price cap will also be lowered, while gas and electricity prices will be decoupled. Lastly, pension taxation is also on the table.
• Aid for companies
the companies with the most difficulties will be able to benefit from the aid, Bruno Le Maire announced on Wednesday. SMEs with a turnover of less than one million euros will continue to benefit from the regulated energy rates and the rest of the SMEs that have obtained a lower benefit may continue to receive the existing aid of 2 million euros from October 1, when their energy bill represents at least 3% of your turnover.
For energy-intensive companies, the minister indicated that he was in talks with the European Commission to review “from top to bottom” the aid that can amount to up to 50 million euros.
• A communication campaign
On October 10, the Government will launch a communication campaign to promote energy saving, with the slogan “every gesture counts”.
Source: BFM TV
