Shaped by rising energy prices, especially due to the economic recovery after the Covid-19 pandemic and the war in Ukraine, the government spent more than 40 billion euros in 2022 to reduce household and business energy bills. However, if public aid continues, it will be less significant in 2023.
Gas and electricity tariff protection has been expanded
Households will continue to benefit from tariff protection for electricity and gas prices. The increase in tariffs is capped at +15% for the year (compared to +4% in 2022). Without this protection, the government estimates that prices could increase by 100%.
- Gas prices rose by 15% on January 1, an average increase of €25 for households heating with gas, compared to €200 without tariff protection. Prices could rise from June 30 unless the government decides to extend the protective shield.
- Electricity prices will rise on February 1st, causing households that heat with electricity to incur an average additional cost of 20 euros. They will then remain blocked until the end of the year.
Not only private individuals benefit from the tariff plate, but also micro-enterprises (TPE), micro-communities and flat-sharing communities (Ehpad, residence autonomy, etc.). Its cost to public finances is estimated at €21 billion in 2023.
A fuel allowance to replace the discount at the pump
The state petrol station discount, which had been reduced from 30 to 10 centimes per liter since November 16, was completely abolished on January 1. The government replaced them with a €100 fuel lump sum offered to “the 10 million humblest workers”.
This allowance affects the 50% of the poorest households who need their vehicle – car or bike – to get to work. The income limit corresponds to a reference tax income of EUR 14,700 per tax portion.
Since the help is individual and not per household, the two members of a modest household can benefit from it. According to the administration, this aid corresponds to 10 centimes per liter for a person who travels 12,000 kilometers a year.
The allowance is allocated upon application to the tax office and requires submission of your license plate number and your gray card, your tax number and an affidavit on the use of your vehicle to drive to work.
The budget allocated by the state for this fuel allowance is €1 billion for 2023 – much less than the €7.6 billion spent in 2022.
Also read: 7.5 billion euros in discounts on fuel: what should we have done with such a sum?
Energy vouchers renewed
5.8 million households are to receive the “classic” energy check in the spring for an amount between 48 and 277 euros, depending on the composition and income of the household. Households that heat with heating oil still have time to apply for the “Heating oil operation” exemption test (100 to 200 euros) by March 31 or the “Wood operation” test for wood-fired fireplaces (50 to 200 euros) by April 30.
The “temporary solidarity contribution”, an exceptional tax on refiners, will contribute up to 200 million euros, while taxing exceptional profits from electricity producers could bring in 11 billion euros, according to Gabriel Attal, Minister of Public Finances.