Factsheet for measure
FR-2021-40/3105
–
Updated
– measures in France
Tariff shield for energy prices
Bouclier tarifaire pour les prix de l'énergie
Background information
To protect French people's purchasing power, the government introduced a tariff shield in 2021 to cap the rise in electricity and gas bills. Faced with a projected 35% rise in electricity tariffs on 1 February 2022, the government took new measures to cap the increase at 4%. After being extended in 2022, the scheme will be renewed in 2023, but is due to come to an end for gas during the year.
Content of measure
Tariff increases are limited to 15% from 1 January 2023 for gas, and also to 15% for electricity from 1 February 2023. This limitation is higher than that of 2022 (which was 4%) but it concerns "all households, condominiums, social housing, small businesses and the smallest municipalities". This measure implies:
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an average increase in bills of around €25 per month for households that heat with gas. The increase would be around €200 per month without the tariff shield;
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an average increase of around €20 per month for households heating with electricity, instead of €180 without the tariff shield.
For households and condominiums with a direct natural gas supply contract: whatever the nature of the contract, they benefit from the tariff shield, calculated on the basis of the regulated sales tariffs (TRV) for natural gas. As a reminder, in the case of gas, these tariffs were frozen at their tax-inclusive level on 1 November 2021, which meant that the French did not suffer any increase in their bill until 31 December 2022. In 2023, the shield is extended and will limit the increase in frozen TRVs to 15% including tax on average.
There is no catch-up to be borne by households in 2024, as the shortfall for energy companies will be covered by the State. In addition, aid of up to €200 is also planned for French people who heat with oil or wood.
Updates
The following updates to this measure have been made after it came into effect.
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21 April 2023
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The French Minister for the Economy, Bruno Le Maire, has confirmed that the price cap on electricity, which remains high, will be maintained for two years. On the other hand, he justified the end of the gas price shield on the grounds that the market should return to normal by 2023, without maintaining it until 31 December 2023 as initially announced (see, article Les Echos, in Source).
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Use of measure
No data.
Target groups
Actors and funding
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Actors
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Funding
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National government
Company / Companies
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Companies
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement as case not in social partner domain
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No involvement as case not in social partner domain
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
No involvement.
Views and reactions
No information.
Sources
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30 December 2020: Loi n° 2021-1900 du 30 décembre 2021 de finances pour 2022
(www.legifrance.gouv.fr)
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09 April 2022: Décret n° 2022-514 du 9 avril 2022 relatif à l'aide en faveur de l'habitat collectif résidentiel face à l'augmentation du prix du gaz naturel
(www.legifrance.gouv.fr)
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14 November 2022: Décret n° 2022-1430 du 14 novembre 2022 modifiant le décret n° 2022-514 du 9 avril 2022 relatif à l'aide en faveur de l'habitat collectif résidentiel face à l'augmentation du prix du gaz naturel
(www.legifrance.gouv.fr)
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30 December 2022: Loi n° 2022-1726 du 30 décembre 2022 de finances pour 2023
(www.legifrance.gouv.fr)
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04 January 2023: Hausse des prix de l'énergie : le bouclier tarifaire prolongé en 2023
(www.service-public.fr)
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15 February 2023: Bouclier tarifaire pour le gaz naturel
(www.ecologie.gouv.fr)
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21 April 2023: Electricité : le bouclier tarifaire maintenu jusqu'à début 2025
(www.lesechos.fr)
