- The Minister of the Economy Bruno Le Maire announced the end of the tariff shield for gas this year and the maintenance of this shield for electricity until the beginning of 2025
- The price shield is a device that limits the rise in energy prices (gas and electricity) for households and small businesses
- Expensive, this measure is controversial since it does not solve the fundamental problem of the energy transition
The tariff shield is over! Finally, for the gas. In any case, this is what the Minister of the Economy Bruno Le Maire announced at the microphone of LCI. The price shield is a device that limits the increase in natural gas and electricity prices for households and small businesses. Set up in 2021 to deal with soaring energy prices on international markets, it will begin to end “starting this year” announced the Minister.
“The gas shield is no longer necessary” he explained, justifying his decision by the fact that “prices are back to normal” and that there is “no reason for this to continue”. And to add:
We’re going to take longer to get out of the shield on electricity.
End of the tariff shield for gas, maintenance for electricity
For electricity, the tariff shield will be maintained until the beginning of 2025. Remember that it limit price increases to 15% since February 1, 2023, instead of 4% in 2022. This measure concerns “all households, condominiums, social housing, small businesses and smaller municipalities”. In addition, the minister announced that he was going to bring together Engie and the gas suppliers to simplify the bills.
Bruno Le Maire took the opportunity to explain his short and medium term calendar. It will be necessary “coming out of the shields gradually” et “get out of the politics of the checkbook, the politics of whatever it costs” he said.
24 billion euros in 2022
The tariff shield is a controversial measure, which amounts to several billion each year and which does not solve the basic problem of the energy transition. Some players in the sector are calling for a more structural reform of energy tariffs, which takes into account the real costs of production and delivery, as well as environmental issues.
The cost of the tariff shield for the State is difficult to assess precisely since it depends on the evolution of energy prices on international markets. According to the Ministry of Economy, the tariff shield cost 24 billion euros in 2022 and should cost 16 billion euros in 2023. But according to the general rapporteur for the Budget in the Senate, the cumulative cost of the tariff shield could reach 170 billion euros by 2027.
