popular articles

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.

Please share:

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.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The U.S. Department of Energy will purchase three litres of helium-3 from Interlune by 2029, marking the first public contract involving a natural resource extracted from the lunar surface.
Iran will limit daily power cuts to two hours for households starting May 10, aiming to ease pressure on the national electricity grid as temperatures climb.
Iran will limit daily power cuts to two hours for households starting May 10, aiming to ease pressure on the national electricity grid as temperatures climb.
The French government has entrusted Bernard Fontana with the leadership of EDF, relying on his industrial background to manage the end of the Arenh and revive the nuclear programme.
The French government has entrusted Bernard Fontana with the leadership of EDF, relying on his industrial background to manage the end of the Arenh and revive the nuclear programme.
Germany’s new Economy Minister, Katherina Reiche, plans 20 gigawatts of gas-fired plants to address the limits of renewable energy.
Germany’s new Economy Minister, Katherina Reiche, plans 20 gigawatts of gas-fired plants to address the limits of renewable energy.
The Spanish Prime Minister has asked for more time to determine the causes of an unprecedented outage on April 28 that cut 15 gigawatts of electricity from the peninsula’s grid.
Prime Minister François Bayrou confirmed that France’s 2025–2035 energy roadmap remains under discussion and will only be finalised after parliamentary debates starting on 16 June.
Prime Minister François Bayrou confirmed that France’s 2025–2035 energy roadmap remains under discussion and will only be finalised after parliamentary debates starting on 16 June.
The re-election of the Albanese government reassures energy stakeholders calling for regulatory adjustments to accelerate projects and secure long-term investment.
The re-election of the Albanese government reassures energy stakeholders calling for regulatory adjustments to accelerate projects and secure long-term investment.
SOGARA is launching a two-phase modernisation programme to increase the country's energy autonomy by 2030, with financing primarily from external sources.
SOGARA is launching a two-phase modernisation programme to increase the country's energy autonomy by 2030, with financing primarily from external sources.
Suriname has launched a pre-distribution programme of its future oil revenues, offering a $750 bonus to more than 570,000 citizens well before the start of offshore production scheduled for 2028.
One week after the massive blackout, Spain and Portugal continue their investigations with no technical conclusion, while Madrid calls on France to accelerate cross-border interconnection projects.
One week after the massive blackout, Spain and Portugal continue their investigations with no technical conclusion, while Madrid calls on France to accelerate cross-border interconnection projects.
Australia’s opposition leader unveils a seven-reactor plan, challenging current energy policy days before federal elections and reviving a decades-old debate.
Australia’s opposition leader unveils a seven-reactor plan, challenging current energy policy days before federal elections and reviving a decades-old debate.
The French Energy Regulatory Commission proposes reducing certain renewable generation targets due to a slower-than-expected rise in electricity demand.
The French Energy Regulatory Commission proposes reducing certain renewable generation targets due to a slower-than-expected rise in electricity demand.
Nominated to lead EDF, Bernard Fontana aims to restore dialogue with electro-intensive industries and oversee the nuclear revival while ensuring the group’s financial sustainability.
Two days after a blackout that disrupted 60% of national demand, the growing share of renewables in Spain’s grid faces strong political and industrial criticism.
Two days after a blackout that disrupted 60% of national demand, the growing share of renewables in Spain’s grid faces strong political and industrial criticism.
The NGO Reclaim Finance ranked BPCE last among twenty major European banks for its lack of commitment to the transition towards carbon neutrality, according to a study published on Tuesday.
The NGO Reclaim Finance ranked BPCE last among twenty major European banks for its lack of commitment to the transition towards carbon neutrality, according to a study published on Tuesday.
François Bayrou plans to postpone the publication of the French energy decree until the end of the summer after parliamentary review, under pressure from the Rassemblement National and part of the right.
François Bayrou plans to postpone the publication of the French energy decree until the end of the summer after parliamentary review, under pressure from the Rassemblement National and part of the right.
The European Investment Bank signs a loan of over €525mn with PGE to develop solar projects and modernise a power plant in Poland.
Argentina initiates Enarsa's privatization to redefine the state's role toward stronger regulation, paving the way for increased private investment in the national energy sector amid significant industrial and commercial transformation.
Argentina initiates Enarsa's privatization to redefine the state's role toward stronger regulation, paving the way for increased private investment in the national energy sector amid significant industrial and commercial transformation.
The British environmental movement Just Stop Oil organised its final march in London on Saturday, announcing the end of its spectacular actions against new oil and gas projects in the United Kingdom.
The British environmental movement Just Stop Oil organised its final march in London on Saturday, announcing the end of its spectacular actions against new oil and gas projects in the United Kingdom.
The Dutch government is unlocking €11.4 billion aimed at securing industrial energy supplies, strengthening electricity infrastructure, and accelerating civilian nuclear development, in response to current economic and energy constraints.
The Dutch government is unlocking €11.4 billion aimed at securing industrial energy supplies, strengthening electricity infrastructure, and accelerating civilian nuclear development, in response to current economic and energy constraints.
Hydro-Québec announces a 10 G$ investment to enhance energy efficiency through various initiatives by 2035, creating over 5,000 jobs and reducing operating costs for Quebec customers.
The UK government and Italian energy company Eni have announced the financial closing of a project aimed at burying millions of tonnes of CO2 in the Irish Sea, an ambitious initiative to reduce industrial emissions.
The UK government and Italian energy company Eni have announced the financial closing of a project aimed at burying millions of tonnes of CO2 in the Irish Sea, an ambitious initiative to reduce industrial emissions.
The United States strongly criticised anti-fossil fuel policies at the International Energy Agency (IEA) summit, highlighting their dangers to global energy security.
The United States strongly criticised anti-fossil fuel policies at the International Energy Agency (IEA) summit, highlighting their dangers to global energy security.
Countries such as Brazil and Australia are criticised for overstating the CO2 absorption capacity of their forests, a practice that undermines their commitment to reducing greenhouse gas emissions, according to a report by Climate Analytics.
Countries such as Brazil and Australia are criticised for overstating the CO2 absorption capacity of their forests, a practice that undermines their commitment to reducing greenhouse gas emissions, according to a report by Climate Analytics.

Advertising