Electricity and gas tariff shield: how to benefit from it?
The question of the price of gas and electricity worries many French people. Europe and France have faced tension in the energy market, especially after the war in Ukraine. Faced with unprecedented price increases, the French government has drawn up an aid program to support the French amid rising energy prices. We present all its methods to you.
What is this about?
When talking about a price shield, it is actually a price lock that applies to electricity and natural gas and operates separately for these two energies. This assistance intervenes from 1 November 2021 to limit the impact on your heating bills.
The government has already announced that the tariff shield will be renewed in 2023 with different terms.
How does the price shield for gas work?
From November 1, 2022, a price shield was introduced to block natural gas prices. This assistance applies to the regulated gas tariff for GRDF supplier customers. In 5% of the area covered by the ELD (Local Distribution Company), customers can also benefit from the price freeze mechanism.
So if your natural gas contract has prices indexed to the regulated tariff, you are well protected by the tariff shield. In relation to other contracts, we recommend that you contact your supplier to evaluate the application of the device.
From January 1, 2023, the increase in the price of natural gas will be limited to 15%. Without the creation of this tariff shield, it would have been much larger.
Who benefits from the gas rate shield?
Individuals who meet these 2 criteria benefit from the gas tariff shield:
- They live in a collective apartment equipped with a gas heating system (collective boiler or connection to the heating network).
- The price of the gas needed for heating is higher than the price determined by the state authorities in the relevant decision of the system.
The assistance system is now open to condominiums that are collectively heated with gas and meet the same conditions as individuals. It is then up to the syndicate to initiate administrative procedures by determining the share of each lot in the joint property.
How does the price shield for electricity work?
Until February 1, 2023, the average electricity tariff consisted of an average increase of 4% including tax. This tariff shield refers to the regulated tariff offered by EDF in approximately 95% of the French territory or not by the ELDs in the remaining 5% of the territory. If your supplier indexes its prices to the regulated tariff, this measure also affects you. For contracts without an adjustable rate, we recommend that you contact your supplier to check eligibility for the device.
From February 1, 2023, the tariff rate for electricity will increase to 15%.
As with gas, without this protection offered by the state, the increase in electricity prices would have been higher: about +45% in 2022.
Who benefits from the electricity tariff shield?
Eligibility conditions have changed since the system was launched. Initially, the tariff shield was only available to those with a contract on a tariff regulated by EDF.
Today, it has expanded to condominiums such as gas and VSE.
The requirements for VSEs are a maximum of 10 employees, less than 2 million turnovers and less than 36 kVA of electricity.
Electric vehicle charging stations will also be affected by the scheme to support the transition to electric vehicles from 2023.
How to benefit from the tariff shield?
If your electricity or gas contract is regulated, the government subsidy will appear on your energy bills. It will be applied directly to the source and will not require you to take any special steps.
In the case of condominiums, the file must be submitted by the syndicate. The entire process can be found on the website of the Ministry of Energy Transition.
A comparison service has been set up by the state where you can simulate your situation and get an assessment of your eligibility.