“Only sobriety and European solidarity will allow us to avoid cuts” in the event of a particularly cold winter: French Prime Minister Élisabeth Borne wanted to be reassuring yesterday by indicating that the tariff shield would be extended to limit the increases in prices to 15%. electricity and gas prices in 2023. The increases will however be higher than in 2022, with that of electricity tariffs for individuals having been blocked by the government at 4% and gas tariffs frozen at the level of October 2021. If the head of government expressed her fears in the event of a “particularly cold winter combined with supply difficulties”, Élisabeth Borne insisted on the fact that “in the most probable scenarios, if everyone takes their responsibilities and shows the necessary sobriety, there will be no cuts”.
The head of government, who spoke at a press conference – her first since her appointment to Matignon – therefore announced that the increase in gas and electricity prices would be limited to 15% in 2023 “for all households, condominiums, social housing, small businesses and the smallest municipalities”. “These increases will lead to an average increase in bills of around 25 euros per month for households that heat with gas, instead of around 200 euros per month without a tariff shield. And an average increase of around 20 euros per month for households that heat with electricity, instead of 180 euros per month, without a price shield, “said Ms. Borne.
A “specific support” will also be put in place to “help the most modest”, with “exceptional energy checks” of 100 or 200 euros which will be “paid by the end of the year” to 12 million households. This tariff shield will cost 11 billion euros for gas and five billion for electricity, or 16 billion euros, said the Minister of the Economy Bruno Le Maire. Under the effect of the war in Ukraine, the flow of Russian gas to Europe has dried up, which raises fears of shortages in the winter and causes a surge in prices on the markets. However, it is gas prices that lead to electricity prices.
No loss of control
In this context, the operator of the French gas network GRTgaz had already wanted to reassure yesterday morning about France’s ability to “cope” with gas demand during an “average winter”, while developing its exports to Germany from mid-October. According to Elisabeth Borne, the reserves in France are 95% full. The manager of the French electricity transmission network RTE had also sounded the “mobilization” by calling on the French to make an effort of sobriety in the face of a situation described as “exceptional”.
According to RTE, a “risk of cuts cannot be completely excluded”, but “it could be avoided by lowering national consumption by 1 to 5% in the majority of cases and up to 15% in the most extreme weather situations. “. For companies, communities and individuals, this means reducing or postponing the consumption of heating, lighting or cooking, especially during peak consumption, between 8 a.m. and 1 p.m. and between 6 p.m. and 8 p.m. “In no case does France run a risk of total loss of control of the electrical system”, also wanted to reassure RTE.
The French situation finds itself weakened due to nuclear electricity production at its lowest, linked to work or corrosion problems on half of its 56 reactors, even if EDF reiterated yesterday that the shutdown reactors would reopen in during the winter once the maintenance operations have been completed. This “high level of risk” on electricity production cannot, however, “justify” the soaring energy prices on the futures markets, believes RTE, denouncing “a risk premium” very costly for France. Promising Europe’s “unwavering solidarity” with Ukraine and firmness with Moscow, the President of the European Commission Ursula von der Leyen assured yesterday that the EU would initiate “an in-depth reform” of the electricity market. electricity to cope with soaring energy prices.
Source: AFP
“Only sobriety and European solidarity will allow us to avoid cuts” in the event of a particularly cold winter: French Prime Minister Élisabeth Borne wanted to be reassuring yesterday by indicating that the tariff shield would be extended to limit the increases in prices to 15%. electricity and gas prices in 2023. The increases will, however, be…