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Gas price freeze: the Assembly votes in favor of compensation for suppliers

2021-11-06T10:07:24.661Z


As prices are frozen for the whole of 2022, a catch-up mechanism is put in place from July. The National Assembly adopted at the end of the evening Friday a device to compensate the gas suppliers. This involves taking into account the introduction of the "tariff shield" aimed at limiting the surge in energy prices for households. The government amendment provides for a catch-up mechanism, from July 2022, to compensate for the losses that suppliers are about to suffer due to the price fr


The National Assembly adopted at the end of the evening Friday a device to compensate the gas suppliers.

This involves taking into account the introduction of the "tariff shield" aimed at limiting the surge in energy prices for households.

The government amendment provides for a catch-up mechanism, from July 2022, to compensate for the losses that suppliers are about to suffer due to the price freeze. If necessary, the possibility of compensation from the state budget is taken into account. Small suppliers "with less than 300,000 subscribers" will also be able to benefit from a deposit before February 28, 2022.

Prime Minister Jean Castex announced on September 30 the blocking of gas prices for around five million subscribers (including three million at the regulated tariff) in the face of the constant increase in recent months.

On October 21, he added that the price of gas would be frozen "throughout 2022", and not just until April as initially stated.

The government has promised "support" to worried suppliers, while some are threatening to initiate "litigation" against the state.

He also recalled that gas prices have increased sixfold since 2019.

"A simple shift in spending"

On the right, LR deputy Julien Aubert was indignant at the late examination of this “€ 1.2 billion amendment”, shortly before midnight. Regarding the very principle of the tariff shield, criticisms also emerged at the time of its announcement. "The shield is a sleight of hand, we will reimburse it," said Yves Veyrier, secretary general of Force Ouvrière (FO). “It's still a problem. We are proposing a reduction in VAT because energy is a staple product, ”argued CGT number one, Philippe Martinez. The consumer association CLCV saw in this shield "a simple shift in spending, a very relative measure".

More broadly, faced with rising prices, an "inflation allowance" of 100 euros has been set up by the executive power.

It will be paid automatically to people earning less than 2000 euros net per month.

Employees, civil servants, self-employed workers, job seekers and retirees are concerned.

Source: leparis

All business articles on 2021-11-06

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