Rise in energy prices: 22 billion in state aid

Monday, March 7, 2022, the Minister of the Economy, Bruno Le Maire announced on the antenna of BFMTV, that the State was going to invest 22 billion euros to counter the inflation linked to the rise in energy prices in France.

How much are rising energy prices costing the state?

In October 2021, the State undertook to protect individuals from the rise in energy prices linked to the post-lockdown economic recovery infreezing the regulated sales tariffs

The cost of the tariff shield for gas had been estimated at 1.2 billion euros; the cap for electricity has meanwhile already cost "8 billion euros and theinflation allowance4 billion euros".

With the war in Ukraine, and Europe's dependence on Russian gas, gas prices will rise more than expected in France. The Government has therefore redone its calculations: freezing the price of gas should rather cost “10 billion euros over the whole of 2022”.

What does the government intend to do to help the French?

On Wednesday March 2, 2022, the President of the Republic Emmanuel Macron had already asked Prime Minister Jean Castex to draw up an “economic and social resilience plan”. Objective: to find solutions to help individuals who are suffering from severe whip the rise in energy prices linked to the crisis in Ukraine in particular.

Monday March 7, 2022, it was Bruno Le Maire who tried to reassure the French. The government plans to inject 22 billion euros to counter the surge in prices. Nevertheless, he specifies that contrary to what Emmanuel Macron had announced, "it will not be a no matter what it costs". Indeed, the aid will be targeted on the households most in difficulty: "we will provide an answer to all French people most affected by the crisis”.

In addition, the Minister of the Economy appeals to everyone's responsibility. Beyond the financial aid released by the State, the French must “make an effort, all be aware that we are entering a new world, all be aware that we will have to accelerate our independence vis-à-vis 'fossil fuels. If there is one positive thing to draw from this crisis (...) it is to build our total independence in energy matters and to be much less dependent on fossil fuels".

Several means exist to act on its scale and limit the current increase in the gas bill:

• choosing a competitive alternative supplier with a reduction in the price per kWh saves an average of €100/year;
• follow your gas consumption online from thehello watt appbased on data from the Gazpar meter can reduce the bill by €150/year;
• reducing your heating by one degree represents savings of €100 per year on the gas bill.