Elisabeth Borne stated on Saturday that the tariff shield on energy prices could soon be replaced with more targeted assistance for French citizens of low income. On the sidelines of Aix-en-Provence's Economic Meetings, the Prime Minister assured that "we are not going to expose even the most modest French people reckless increases in energy prices."
She pointed out that "if there was no price cap or shield on gas prices, electricity would be a third and 45 to 50% more expensive." We can't imagine asking French citizens, beginning with the humble French, to pay 45% or more for their gas and a third for their electricity. Elisabeth Borne said that, due to the high cost of the tariff shield, it was necessary to shift from more general mechanisms towards more targeted ones. "The work is still in progress.
The government announced on Thursday that the aid for people who drive to work will be taking over from the general discount 18 cents per liter fuel price. This will gradually decrease, and then end. In December.
Elisabeth Borne was less forthcoming when asked about whether it would be wise to tax any "surplus profits," which energy companies might realize due to the sharp rise of energy prices. She stated, "Obviously in principle," that if superprofits are made from the crisis, it is a good idea to tax them.
She immediately clarified, "After that, it's not entirely simple." She added that while "many of our neighbours have established mechanisms to tax these excess profits", France is not in the same position. The Prime Minister stated that the EDF has production problems today with its nuclear fleet, and that we import huge amounts of electricity from overseas. This ruled out "surplus profits" for this energy company. She also noted that "we have oil firms which have distribution activities (but) do not generate super profits".
