The price of energy is a major concern, especially as winter approaches. In France, electricity prices are subject to a tariff shield for 2022. But why is the price of electricity going up? How does the electricity market work? The seven-question update.
The energy tariff shield provided for in the 2022 budget law and extended until the end of 2022 by the amending budget law limits the increase in the regulated electricity price to 4%. The Act also provides for the freezing of the regulated gas tariff, which must not exceed the October 2021 tariff.
In order to reach this 4% ceiling, the government has notably planned to reduce the contribution to the public electricity service (CSPE), formerly the internal electricity tax (TICFE). This measure, provided for in Article 29 of the Finance Law for 2022, entered into force on 1 February 2022 (Read more about the article).
