The Limited Times

Now you can see non-English news...

Energy can no longer be the "cash cow of the state", according to the president of the regulator

2021-10-20T10:59:19.296Z


In an interview with Le Monde published this Wednesday, Jean-François Carenco calls for a reflection on the taxation applied to gas and electricity, in full soaring prices.


It is a voice that matters in the debate on rising energy prices.

Jean-François Carenco, the president of the Energy Regulatory Commission (CRE), says he is in favor of opening a reflection on the taxation applied to gas and electricity, in an interview with

Le Monde

published this Wednesday.

Look at the last ten years: under all government majorities, energy is the cash cow of the state!

This is no longer possible in the long term,

”he lamented.

Read alsoWith the surge in energy prices, will the State "spend twice as much as it will earn"?

“We lived, until 1995, a period when it was necessary to invest in refineries, in nuclear power stations, in electricity networks, which justified such levels of taxation at the time. Then there was no more need to invest. Successive governments have chosen energy as their tax base, so prices have fallen, but taxes have increased, ”

reports the head of the independent administrative authority.

But Jean-François Carenco refuses to blame the government for its opposition to lowering VAT on gas and electricity.

When there is a crisis, we do not take urgent structural measures.

It is a principle, beyond energy

”, he judged.

Faced with soaring wholesale prices on the markets, the government has set up a "tariff shield" to freeze the regulated gas tariff until April and limit the next increase in the electricity tariff to 4% in February. 2022.

Defense of the European electricity market

The president of CRE also warns that the energy transition will not be without effect on energy prices.

"

It will drive up prices,

" he predicts, due to the "

rise in electricity consumption

".

For hydrogen, for the vehicle fleet, for the entire industry, all of this will increase the need for production.

“Thus, Jean-François Carenco defends renewables such as nuclear.

"

We must play to the full on these levers to meet the immense challenge of the energy mix of 2050.

"

Read also Electricity: will needs increase by 20% in the next 10 to 15 years?

In addition, the senior official considers unfounded the criticisms of Bruno Le Maire on the European electricity market, considered "obsolete" and "aberrant" by the Minister of the Economy, and at the origin according to him of the explosion of the French bill.

"

This is an error of terms

", he believes, stressing that "

Europe first allows France to export our nuclear electricity

" and that "

European interconnection allows the security of 'supply

'.

Without the European network, around 20 gas-fired power stations would have to be built in the country,

” he says.

Source: lefigaro

All news articles on 2021-10-20

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.