The energy crisis experienced by France – and Europe – against a background of the drying up of Russian gas will worsen this winter. Faced with soaring electricity and gas prices and while the government is committed to protecting the French, Prime Minister Elisabeth Borne announced this Wednesday, September 14 the limitation to 15% of the increase in the price of gas and electricity.
The “tariff shield” system will be extended to “all households, condominiums, social housing, small businesses and the smallest municipalities”she explained, pointing out that “without government action, tariffs would be multiplied by 2.2 at the beginning of next year”.
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Gas will increase by 15% in January 2023 and electricity by 15% in February, explained the Prime Minister, specifying that the difference would be borne by the State. In 2023, the tariff shield should cost 16 billion euros, said the Minister of Economy Bruno Le Maire, also present at this press conference. Since fall 2021, the “tariff shield” and government rebates on the price of fuel have already cost 24 billion euros, according to a recent figure from Bercy.
Electricity: how high will the bill go?
A “specific support” will be set up for “helping the less fortunate”added Elisabeth Borne, including the payment of “exceptional energy checks” to 12 million French people, from 100 to 200 euros depending on income. “4 out of 10 households” will be concerned, specified Elisabeth Borne.
Sobriety and European solidarity highlighted
“Only sobriety and European solidarity will allow us to avoid cuts and rationing in the most pessimistic scenarios, such as a particularly cold winter combined with supply difficulties”, said the head of government. But “in the most likely scenarios, if everyone takes their responsibilities and shows the necessary sobriety, there will be no cuts”she reassured, specifying that it is not on “the French in a state of fuel poverty” that this responsibility must ” weigh “.
Evoking European solidarity, Elisabeth Borne notably cited the French LNG terminals, “became an entry point for gas in Europe”. She thus put forward the idea that the French could export this gas to its neighbors, who could in return supply it with electricity.
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Faced with soaring prices, the Prime Minister also reprimanded energy speculation. ” We are not fools. We know that some are speculating on the crisis and artificially driving up prices. It’s not acceptable “she said, saying the government would act against this speculation.
No risk of “blackout”
Earlier today, the electricity transmission system operator (RTE) announced that “the risk of tension” on the power grid this winter was “increased”but remained “controllable thanks to strong mobilization” for energy saving.
Energy crisis: the great fear of the blackout
“The risk of cuts cannot be totally 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”assured RTE in a press release, explaining that“in no case does France run a risk of a ‘black-out'”that’s to say “the total loss of control of the electrical system”.
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