PARIS, April 21 (Reuters) – The tariff shield on gas prices will end “as of this year”, Economy Minister Bruno Le Maire announced on Friday, while that on electricity prices will remain in place until at least early 2025.
“Now that the prices (of gas-Editor’s note) have returned to the pre-crisis situation, 50 euros per megawatt / hour, there is no reason to maintain a shield”, said the minister on LCI.
“It will stop this year,” he added.
Faced with soaring energy prices, the government decided in 2021 to freeze gas prices and limit the rise in electricity prices to 4%.
“On electricity, prices have not quite returned to normal yet, so we are going to take a little longer to remove the shield on electricity”, explained Bruno Le Maire on Friday.
“I give us two years, by early 2025, to get out of the electricity shield,” he said.
The end of the tariff shield comes as the government intends to accelerate France’s debt reduction by 2027 in order in particular to limit the debt burden, expected to rise sharply with the rise in interest rates.
“It’s time to put the accounts square (…) We must get out of the policy of the checkbook, exceptional checks, whatever it costs,” said Bruno Le Maire on LCI.
(Written by Blandine Hénault, edited by Bertrand Boucey)
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