“Our objective today is to stop the explosion in energy prices on a European scale and to bring them back to more moderation”hammered the Prime Minister, Elisabeth Borne, wednesday 14 september.
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Faced with soaring electricity and gas costs on the markets, the government took stock, during a much-awaited press conference, of the state of energy resources, and announced the new contours of the shield tariff and aid for companies for the coming months.
Power outages only in severe winters
In order to “ensure that there will be enough gas and electricity this winter for the French”Elisabeth Borne recalled the actions that have been carried out by the government. “We have accelerated the filling of our gas stocks, which is now 95%”but also “increased the import capacities of LNG terminals” and “strengthened and diversified gas supplies from other countries”while accelerating “renewable energy projects”.
Fact, “in the most likely scenarios, if everyone takes responsibility and shows the necessary sobriety, there will be no cuts” energy, assured the Prime Minister, based on the forecasts of network managers, unveiled earlier in the day. In this case there will be no “no activation of the rationing device for the companies that consume the most gas”. In contrast, “only sobriety and European solidarity will enable us to avoid cuts in the most pessimistic scenarios”. In detail, as part of European solidarity, France has undertaken to deliver gas to its neighbors if necessary, and will be able to receive gas on its side.
Elisabeth Borne therefore recalled the objective of reducing energy consumption by 10% compared to last year. “Sobriety is not about producing less. It’s about reducing heating a little and reducing unnecessary consumption”she detailed.
“It is not on the French in a situation of fuel poverty that the efforts must weigh.”
Elisabeth Borneat a press conference, September 14, 2022
The tariff shield extended in 2023 but a 15% increase for gas and electricity
The anticipated electricity and gas prices for 2023 are “unreasonable”admitted Elisabeth Borne. “Without government action, tariffs would be multiplied by 2.2 at the start of next year”, she encrypted. To limit this increase, the Prime Minister announced: “We are going to extend in 2023 the tariff shield mechanism for all households, condominiums, social housing, small businesses and the smallest municipalities.” In addition, the government has undertaken to limit “the price increase to 15% for gas in January 2023 and to 15% for electricity in February 2023”. Or, on average, 25 euros per month for households that heat with gas and 20 euros for those that heat with electricity.
In addition, the Prime Minister promised that there would be no catch-up on the bill in 2024, but that the shortfall for energy companies would be “supported by the state”. “We are also aware of the difficulties of the French who do not heat themselves with gas or electricity, but with fuel oil or wood”, she noted. An envelope of 230 million has been provisioned and will be distributed “in November” to interested parties.
A new energy check
“Specific support to help the most modest” will be put in place, assured the Prime Minister. “Exceptional energy checks will be paid by the end of the year”announced Elisabeth Borne. “This aid will concern the 12 million poorest households, i.e. four out of 10 households. Its amount will be 100 or 200 euros depending on income.“
Revamped aid for businesses
The Minister of Economy, Bruno Le Maire, added that SMEs with less than 10 employees and whose turnover is less than two million euros “Continue[aie]nt to benefit from access to the tariff regulated with the tariff shield”. For larger SMEs, aid of up to two million euros will be “recast”. From October 1, “any SME whose turnover includes at least 3% of energy bills will have access to this aid”when its turnover is down for at least one month.
Finally, for the most energy-intensive companies (printing, chemical or steel industries), the Minister of the Economy promised that “the European system which is too complex and which does not work” would be “reviewed from top to bottom”. Discussions are under way with the European Commission “and we hope that they will be completed before the end of the year”. “As long as energy prices remain high, the business window will remain open”he promised.