Gas suppliers will be compensated for the price freeze announced by the government

The National Assembly adopted at the very end of the evening, Friday November 5, a device to compensate gas suppliers after the establishment of the “Tariff shield” aimed at limiting the surge in energy prices for households.

The government amendment provides for a catch-up mechanism, from July 2022, to compensate for the losses that suppliers are about to suffer due to the price freeze. With, if necessary, the possibility of compensation from the state budget. Small suppliers “Less than 300,000 subscribers” may also benefit from a deposit before February 28, 2022.

Threats of “litigation”

Prime Minister Jean Castex announced on September 30 the blocking of the price of gas for around five million subscribers (including three million at the regulated tariff) in the face of the constant increase in recent months. On October 21, he added that the price of gas would be frozen “ throughout the year 2022 “, and not just until April as initially stated.

The government has promised a ” accompaniement “ to worried suppliers, while some threaten to initiate “Litigation” against the state.

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The World with AFP

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