Energy Vouchers and Tariff Shield Reshape Energy Policy

The abandonment of the "tariff shield" in favor of "energy vouchers" marks a turning point in French energy policy.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Senate’s recent decision to replace the “tariff shield” on electricity with targeted “energy vouchers” raises many questions about the effectiveness and fairness of this measure. Initially to be introduced in autumn 2021, the “tariff shield” was intended to limit the increase in electricity tariffs. However, the Senate opted for a more targeted approach, favoring the most modest households.

Budget impact and expected savings

The amendment adopted by the senators envisages putting an end to the current system and introducing a system of energy vouchers, aimed specifically at the six lowest income deciles. This measure is expected to generate savings of at least one billion euros for public finances. However, it also implies a potential rise in costs for wealthier families, polarizing the debate on questions of equity and efficiency.

Political Debates and Government Divergences

Jean-François Husson, general rapporteur and member of the Les Républicains party, defended the decision, calling it necessary to make the richest households more responsible. On the other hand, the government, through the voice of Public Accounts Minister Thomas Cazenave, has been reticent, deeming the measure costly and advocating a gradual increase in taxation. This opposition from the government, despite the initial approval of Economy Minister Bruno Le Maire, underlines the tensions and divergent perspectives within the executive branch.

Consequences for Wealthy and Modest Households

The Senate’s proposal, while welcomed by several political parties, including the right, center and ecologists, remains controversial. In addition, Senator Christine Lavarde (LR) criticized the government for not protecting the most vulnerable households sufficiently. In response, Thomas Cazenave defended the government’s position as balanced.

The challenges of energy transition in France

This situation illustrates the complexity of energy policy in France, where the need to protect the most vulnerable households must be balanced with budgetary constraints and environmental imperatives. The decisions taken will have a significant impact on purchasing power, resource distribution and the country’s energy transition.
In addition, the executive’s use of article 49.3 of the Constitution in the National Assembly on this draft budget indicates a potential legislative conflict. Indeed, although the government has the capacity to reject this measure in the end, the ongoing debate reveals a deep political divide and crucial questions concerning the future of energy policy in France.

The transition from “tariff shields” to “energy vouchers” raises critical questions about the balance between equity and budget efficiency.

The Canadian government introduces major legislative changes to the Energy Efficiency Act to support its national strategy and adapt to the realities of digital commerce.
Quebec becomes the only Canadian province where a carbon price still applies directly to fuels, as Ottawa eliminated the public-facing carbon tax in April 2025.
New Delhi launches a 72.8 bn INR incentive plan to build a 6,000-tonne domestic capacity for permanent magnets, amid rising Chinese export restrictions on critical components.
The rise of CfDs, PPAs and capacity mechanisms signals a structural shift: markets alone no longer cover 10–30-year financing needs, while spot prices have surged 400% in Europe since 2019.
Germany plans to finalise the €5.8bn ($6.34bn) purchase of a 25.1% stake in TenneT Germany to strengthen its control over critical national power grid infrastructure.
The Ghanaian government is implementing a reform of its energy system focused on increasing the use of local natural gas, aiming to reduce electricity production costs and limit the sector's financial imbalance.
On the 50th anniversary of its independence, Suriname announced a national roadmap including major public investment to develop its offshore oil reserves.
China's power generation capacity recorded strong growth in October, driven by continued expansion of solar and wind, according to official data from the National Energy Administration.
The 2026–2031 offshore programme proposes opening over one billion acres to oil exploration, triggering a regulatory clash between Washington, coastal states and legal advocacy groups.
The government of Mozambique is consolidating its gas transport and regasification assets under a public vehicle, anchoring the strategic Beira–Rompco corridor to support Rovuma projects and respond to South Africa’s gas dependency.
The British system operator NESO initiates a consultation process to define the methodology of eleven upcoming regional strategic plans aimed at coordinating energy needs across England, Scotland and Wales.
The Belém summit ends with a technical compromise prioritising forest investment and adaptation, while avoiding fossil fuel discussions and opening a climate–trade dialogue likely to trigger new regulatory disputes.
The Asian Development Bank and the Kyrgyz Republic have signed a financing agreement to strengthen energy infrastructure, climate resilience and regional connectivity, with over $700mn committed through 2027.
A study from the Oxford Institute for Energy Studies finds that energy-from-waste with carbon capture delivers nearly twice the climate benefit of converting waste into aviation fuel.
Signed for 25 years, the new concession contract between Sipperec, EDF and Enedis covers 87 municipalities in the Île-de-France region and commits the parties to managing and developing the public electricity distribution network until 2051.
The French Energy Regulatory Commission publishes its 2023–2024 report, detailing the crisis impact on gas and electricity markets and the measures deployed to support competition and rebuild consumer trust.
Gathered in Belém, states from Africa, Asia, Latin America and Europe support the adoption of a timeline for the gradual withdrawal from fossil fuels, despite expected resistance from several producer countries.
The E3 and the United States submit a resolution to the IAEA to formalise Iran's non-cooperation following the June strikes, consolidating the legal basis for tougher energy and financial sanctions.
The United Kingdom launches a taskforce led by the Energy Minister to strengthen the security of the national power grid after a full shutdown at Heathrow Airport caused by a substation fire.
New Delhi is seeking $68bn in Japanese investment to accelerate gas projects, develop hydrogen and expand LNG import capacity amid increased openness to foreign capital.

All the latest energy news, all the time

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.