To what extent will the dizzying increases in wholesale electricity prices and gas prices affect French households? The Minister of the Economy, Bruno Le Maire, assured on Saturday August 27 that the increase in electricity and gas prices for consumers would be “contained” in 2023.
“The 4% cap [du tarif réglementé de l’électricité] will be maintained until the end of 2022, there will be no catch-up on this cap in 2023”, declared the minister on the sidelines of the congress of majority executives in Metz, adding that « the increases of which the President of the Republic and the Prime Minister have spoken will be contained increases”. He specified that the same principle would apply for the price of gas, without giving further details.
Wholesale electricity prices for 2023 broke a record for France on Friday by reaching more than 1,000 euros per megawatt-hour (MWh), against around 85 euros a year ago. Gas prices were moving this week to historic levels, more seen since the start of the Russian invasion in Ukraine, more than 300 euros per MWh.
Taken into account in budget forecasts
“For the most modest households, there will be energy vouchers which will help those who are most in difficulty to pay their energy bills”insisted Bruno Le Maire. “We don’t want inflation to translate into economic brutality for French households”underlined the Minister, who wishes that the effects of inflation for the population be “smoothed over time”.
For companies, Bruno Le Maire said he wanted to simplify access to a fund of 3 billion euros for those who have difficulty paying their electricity bill. He also recalled that 1.5 million SMEs benefited from the regulated electricity tariff and that others benefited from preferential tariffs.
The government will “simplify in the days to come these criteria for access to the one-stop shop so that any company which is currently in difficulty because its electricity bill has exploded and it is not protected by tariffs regulated, can more easily access these subsidies”promised the minister. Asked about the cost for the State of this aid and the capping of energy prices, Bruno Le Maire assured that “All budget forecasts were made taking into account the very sharp increase in electricity and gas prices. We are not taken aback”.