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"Tariff shield" against the rise in electricity prices: a cost of 14 billion for the State

2022-01-11T09:11:05.205Z


The government ensures that the price increase will be curbed throughout 2022 so as not to exceed 4%.


The equation is not straightforward.

While electricity prices are soaring in Europe, the government says its "

tariff shield

" will resist.

Its role: to maintain at 4% a price increase which, without intervention, should have reached “

38% to 40%

” according to the estimates presented by Bruno Le Maire on Monday, January 10.

Barbara Pompili has now presented the provisional invoice: the measures already taken by the State to protect the French from this price boom represent a total cost of 14 billion euros over the period 2021-2022.

To read also Barbara Pompili: "We must get out of the rhetoric of the last chance which locks in a logic of failure"

"

We assume

", says Barbara Pompili, "

to take these decisions to help the French to pass this course

".

The reduction in taxes represents an important part of the total sum mentioned by the Minister.

A compensation measure is provided for the suppliers.

According to Bruno Le Maire, tax relief alone costs the State 8 billion euros over the period 2021-2022.

Recall that in October 2021.

EDF involved

The measures decided so far by the government still do not allow to keep the promise of an increase contained at 4%. Consultations are thus planned, to lead at the end of the week to a definitive solution making it possible to contain the increase until the end of the year 2022. The government thus plans to force EDF to provide even more cheap electricity. to its competitors - currently, the group sells them a quarter of its electricity production, at a price of 42 euros per megawatt hour. “

We think it's going to be difficult to avoid [this solution]. It's normal

, ”Judge Barbara Pompili.

"

If [the prices] continue to increase, we risk having postponements and I would not want that by maintaining the prices in 2022, cala leads to increases in 2023 and we are working on solutions that will be announced. very soon

, ”added Barbara Pompili.

Read also Electricity: "There will be no general blackout by the end of winter", assures Barbara Pompili

The energy sector is under tension at the start of the year, due to these increases but also to the unexpected shutdown of four nuclear power plants, which require repairs.

On this aspect, Barbara Pompili affirms that it remains necessary to develop renewable energies to “top

up

” in the event of unforeseen events.

Nuclear power is not green, it produces hazardous waste

,” repeated the Minister for Ecological Transition, while nuclear accounts for 70% of French electricity production.

Source: lefigaro

All news articles on 2022-01-11

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