popular articles

France: Energy shields cost EUR 20.4 billion over 2022-2023

The Commission de régulation de l'énergie (CRE) reveals that tariff shields for gas and electricity cost 20.4 billion euros between 2022 and 2023, in order to protect consumers against soaring prices.
Coût des boucliers énergétiques

Please share:

The protective measures put in place by the French state to moderate the impact of rising electricity and gas prices have generated a net cost of 20.4 billion euros over the past two years.
The Commission de régulation de l’énergie (CRE) details these costs in its annual report, pointing out that the majority of expenditure is concentrated on the years 2022 and 2023.

Price caps and targeted support

The Tariff Shield scheme caps gas and electricity prices for individuals and very small businesses subscribing to the regulated tariff.
At the same time, a cushion is offered to businesses on a case-by-case basis to limit the financial impact of the energy crisis fueled by the post-Covid recovery and the war in Ukraine. The period concerned runs from 2021 to 2024, although the bulk of the measures are concentrated on 2022 and 2023.
At the same time, other aids such as the energy voucher and the fuel allowance are also being deployed, bringing the total cost of the support schemes to 36 billion euros net, according to the Cour des Comptes.
In addition to fuel allowances, the tariff shield was largely financed by renewable energies.

Breakdown of costs and revenues

Of the 26.3 billion euros in gross costs identified by CRE, 21.5 billion are attributed to electricity, while 4.8 billion concern gas.
However, renewable energies will bring in 5.9 billion euros for the State by 2022-2023, thanks to a support mechanism introduced in 2003.
Under this mechanism, the government guarantees a certain electricity purchase price to renewable energy operators, who pay the difference back when market prices exceed this threshold.
As a result, the net cost of energy shields amounts to 20.4 billion euros, after deducting revenues from renewables.

Outlook for 2024 and beyond

For 2024, CRE forecasts that public energy service charges (CSPE) will reach 4.2 billion euros, higher than initially forecast due to the return of support for renewables against a backdrop of falling electricity prices on wholesale markets.
In 2025, the authority expects CSPE to return to levels close to those prevailing before the energy crisis, i.e. around 8.9 billion euros, thanks to the gradual end of exceptional consumer protection mechanisms and falling energy prices.
This situation highlights the challenges and costs associated with managing the energy transition and protecting consumers in a context of volatile energy prices.
The exceptional measures taken in recent years have helped to limit the impact of the crisis, but also underline the need for a long-term strategy to ensure the stability and sustainability of the energy market.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The European Investment Bank is funding a €732 mn expansion plan to modernise and stabilise the electricity network in the Ostsachsen region by 2027.
The European Commission is launching a large-scale call for projects to finance priority energy infrastructure between Member States and neighbouring countries, with a maximum budget of €600mn from the CEF Energy programme.
The European Commission is launching a large-scale call for projects to finance priority energy infrastructure between Member States and neighbouring countries, with a maximum budget of €600mn from the CEF Energy programme.
The National Commission for Public Debate opens a three-month consultation in Fos-sur-Mer on the industrial future of this strategic zone, ahead of state decisions on 40 projects with major economic and energy implications.
The National Commission for Public Debate opens a three-month consultation in Fos-sur-Mer on the industrial future of this strategic zone, ahead of state decisions on 40 projects with major economic and energy implications.
François Bayrou souhaite engager un débat sans vote au Parlement sur la programmation énergétique 2025-2035, alors que le projet alimente les tensions politiques et que le Rassemblement national menace de déposer une motion de censure.
François Bayrou souhaite engager un débat sans vote au Parlement sur la programmation énergétique 2025-2035, alors que le projet alimente les tensions politiques et que le Rassemblement national menace de déposer une motion de censure.
The European Court of Auditors warns of the urgency of massive investments in the Union’s ageing power grids, hampered by administrative delays and inadequate planning.
Several lawmakers and former energy executives are demanding a moratorium on PPE3, criticising a plan they view as disconnected from current economic and geopolitical realities.
Several lawmakers and former energy executives are demanding a moratorium on PPE3, criticising a plan they view as disconnected from current economic and geopolitical realities.
The head of Framatome will be heard on 30 April by both chambers to validate his nomination to lead EDF, following the non-renewal of Luc Rémont by the executive.
The head of Framatome will be heard on 30 April by both chambers to validate his nomination to lead EDF, following the non-renewal of Luc Rémont by the executive.
Following a series of major electricity outages on the island of Upolu, the Samoan government has declared a state of emergency to prioritise essential services and mobilise foreign aid.
Following a series of major electricity outages on the island of Upolu, the Samoan government has declared a state of emergency to prioritise essential services and mobilise foreign aid.
The Minister of Industry and Energy expressed openness to a debate and a vote on the 2025–2035 energy strategy, amid criticism from opposition parties over the lack of democratic consultation.
France’s Ministry of Industry and Energy postpones the 2025 energy voucher to November, citing delayed budget approval and announcing revised allocation rules.
France’s Ministry of Industry and Energy postpones the 2025 energy voucher to November, citing delayed budget approval and announcing revised allocation rules.
France’s decarbonisation pace slowed significantly in 2024, according to Citepa, putting its 2030 climate targets at risk.
France’s decarbonisation pace slowed significantly in 2024, according to Citepa, putting its 2030 climate targets at risk.
Luc Rémont was dismissed as head of EDF by the French executive due to disagreements over industrial contract strategy and financing of the EPR2 nuclear programme.
Luc Rémont was dismissed as head of EDF by the French executive due to disagreements over industrial contract strategy and financing of the EPR2 nuclear programme.
Just Stop Oil will end its high-profile actions after one of its core demands was integrated into the British government's energy policy.
The surge in solar production and the slow upgrade of electricity infrastructure are blocking thousands of projects in the Netherlands, affecting energy security and consumer costs.
The surge in solar production and the slow upgrade of electricity infrastructure are blocking thousands of projects in the Netherlands, affecting energy security and consumer costs.
The development of French power grids is facing a structural shortage of skilled labour, despite €200bn in projected investments by 2040.
The development of French power grids is facing a structural shortage of skilled labour, despite €200bn in projected investments by 2040.
Luc Rémont's departure exposes ongoing disagreements between EDF and the French State over electricity pricing for industry and the financing terms of the nuclear programme.
Luc Rémont's departure exposes ongoing disagreements between EDF and the French State over electricity pricing for industry and the financing terms of the nuclear programme.
The European Investment Bank approves a final tranche of PLN1.7bn for Orlen to modernise electricity distribution infrastructure in Poland via its subsidiary Energa Operator.
Luc Rémont is replaced as head of EDF as French manufacturers criticise a pricing strategy seen as incompatible with national industrial competitiveness.
Luc Rémont is replaced as head of EDF as French manufacturers criticise a pricing strategy seen as incompatible with national industrial competitiveness.
Luc Rémont will not be reappointed as Chairman of Électricité de France, two years after his nomination, despite record profits in 2024 and the revival of the nuclear fleet.
Luc Rémont will not be reappointed as Chairman of Électricité de France, two years after his nomination, despite record profits in 2024 and the revival of the nuclear fleet.
The French government has appointed Bernard Fontana to lead EDF, relying on his experience in nuclear energy and energy-intensive industries, amid strategic restructuring and rising tariff pressures.
The French government has appointed Bernard Fontana to lead EDF, relying on his experience in nuclear energy and energy-intensive industries, amid strategic restructuring and rising tariff pressures.
The European Southern Observatory (ESO) warns of the potentially devastating consequences of a power plant project near its telescopes in the Atacama Desert, highlighting irreversible light pollution.
The recent elections in Greenland resulted in a victory for the Demokraatit party, which advocates gradual independence from Denmark and increased support for the exploitation of natural resources, prioritizing the mining and energy sectors. This election comes amid heightened international tensions, notably due to proposals by Donald Trump to annex the territory.
The recent elections in Greenland resulted in a victory for the Demokraatit party, which advocates gradual independence from Denmark and increased support for the exploitation of natural resources, prioritizing the mining and energy sectors. This election comes amid heightened international tensions, notably due to proposals by Donald Trump to annex the territory.
In January 2025, Italy recorded a trade deficit of €264 million, largely attributed to the rising energy costs, according to the National Institute of Statistics (Istat).
In January 2025, Italy recorded a trade deficit of €264 million, largely attributed to the rising energy costs, according to the National Institute of Statistics (Istat).
The National Federation of Mines and Energy of the General Confederation of Labour (FNME-CGT) has elected Fabrice Coudour as secretary general. He succeeds Sébastien Ménesplier and inherits strategic issues, including the opening of hydropower concessions to competition.
The National Federation of Mines and Energy of the General Confederation of Labour (FNME-CGT) has elected Fabrice Coudour as secretary general. He succeeds Sébastien Ménesplier and inherits strategic issues, including the opening of hydropower concessions to competition.

Advertising