We must end the tariff shield on electricity prices for the wealthiest households in order to reduce its cost while encouraging energy sobriety, judge three economists in a note published on Tuesday by the Economic Analysis Council (CAE).
Given its weight for public finances, a return to the regulated tariff (for electricity, editor’s note) should be considered, with a faster exit from the shield for the wealthiest households, while the most modest would continue to benefit from support, recommend Xavier Jaravel, Isabelle Mjean and Xavier Ragot, economists within the Economic Analysis Council (CAE). The wealthiest 20% of households could thus be excluded from the tariff shield, a measure that would make it possible to make budget savings of 5 to 6 billion eurosaccording to Xavier Ragot.
Another option would be distribute an energy check to the most modest households. Both approaches would incentivize a reduction in electricity consumption and achieve substantial budget savings, say the researchers. For Xavier Ragot, the tariff shield has achieved its economic objectives by supporting activity, preserving household purchasing power and significantly reducing the price of electricity. According to estimates by the Energy Regulation Commission, electricity prices would have jumped 35% in 2022 and 100% in 2023 without this protective device.
The other side of the coin, by supporting the demand for energy partly imported from abroad, the shield has contributed to increasing France’s trade deficit. Another disadvantage, it has increased the direct CO2 emissions of households by 2.5% compared to a world without a shield, calculate the authors.
The tariff shield limiting the price of electricity for individuals will be maintained until the beginning of 2025, the Minister of the Economy Bruno Le Maire announced in April.
The government estimated, at the end of last year, 110 billion euros between 2021 and 2023 the cost of the energy shield for households, communities and businesses.
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