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France to increase gas and electricity prices by 15% in 2023

Posted on Wednesday, September 14, 2022 at 8:28 pm

France on Wednesday introduced its battle plan to get by way of the winter: though the chance of cuts could be very actual, the prime minister known as for moderation and European solidarity and capped gas prices and electricity prices at 15% in 2023.

Like its European neighbors, the French state will proceed to spend billions of euros to mitigate the results of Europe’s worst vitality disaster for the reason that Seventies.

At the tip of the yr 40% of households, i.e. 12 million households, will obtain an distinctive vitality test: 200 euros for the bottom 20% and 100 euros for the opposite 20%.

In the primary model of the tariff defend, regulated electricity tariffs had been elevated by 4% in February 2022 and gas was frozen at October 2021 ranges. Not solely households, however condominiums, housing socials, small companies and, in accordance to Elizabeth Bourne, small municipalities, about two-thirds of them, will profit from this charge capped at 15% subsequent yr.

Without this “defend”, prices would have risen by 120%, in accordance to the federal government. The state can pay the distinction: it is going to spend 45 billion euros “gross” in 2023, however 16 billion euros “internet”, slicing 29 billion euros in funds from corporations producing renewable vitality – in accordance to a course of that the European Commission will search to “super-profit” vitality corporations. Generalize to Europe to get better its share.

The head of the French authorities expressed his fears in the face of “particularly chilly winters mixed with provide difficulties”. But he emphasised that “beneath the circumstances, if everybody takes duty and workout routines the mandatory restraint, there might be no cuts”.

For those that warmth with oil or wooden, the help voted in parliament this summer season might be paid out by the tip of the yr.

On the opposite hand, the federal government reminds that no particular meals exams are deliberate quickly, however an “distinctive back-to-school help” of 100 euros per household, with an increase of fifty euros per little one, might be geared toward beneficiaries of the social minimal. 10.88 million households might be paid on Thursday.

In addition, Economy Minister Bruno Le Maire on Wednesday didn’t rule out sustaining vitality help in 2023, relying on the evolution of oil prices. But they are going to be “focused, particularly those that haven’t any different choice than their automotive to get to work”.

The 15% increase in regulated prices has been criticized as too excessive by the opposition, from Marine Le Pen, head of the RN deputies, who condemned the “double penalty for the French” who will undergo the increase whereas financing the worth defend, to Olivier Fauré PS-A or deputy LFI Manuel Bompard- A who condemned a authorities “paying the individuals and the state to defend the tremendous wealthy and the profiteers of the disaster”.

– No “lack of management” –

As a results of the warfare in Ukraine, the movement of Russian gas to Europe has dried up, creating fears of shortages in the winter and driving up prices in the market. However, it’s gas prices that drive electricity prices.

Managers of the French gas (GRTGas) and electricity (RTE) networks warned on Wednesday of the chance of cuts if the winter freezes. An common winter can be extra snug.

The distinction between gas and electricity is that you just want to retailer gas now, to make the reserves already constructed final so long as attainable.

On electricity, RTE has not “fully dominated out” the chance of cuts, believing that it could possibly be prevented “by lowering nationwide consumption by 1 to 5% in most instances and up to 15% in essentially the most excessive climate situations”.

For corporations, native authorities and people, this implies lowering or suspending heating, lighting or cooking prices, notably throughout peak consumption instances, between 8:00am and 1:00pm and 6:00pm and 8:00pm.

Whatever occurs after this winter, moderation will stay: EDF, in accordance to an exterior audit, will nonetheless have many websites to function subsequent winter and… till 2025.

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