Energy: European countries try to limit the impact of rising prices

The price of electricity could increase by nearly 10% in France according to the UFC-Que Choisir (illustrative image).

AP - Frank Augstein

Text by: RFI Follow

1 min

The price of energy is soaring in Europe.

In question, the rise in the price of gas which brings with it the wholesale electricity market.

After Spain, Italy has just announced measures without which the price of electricity would have increased by 40% in the next quarter, according to the Italian government. 

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The Italian state is going to put its hand in the wallet to spare that of certain consumers.

The government has announced measures worth three billion euros so that gas and electricity bills do not increase too much.

He promises that three million low-income people will not see their electricity bills fundamentally change.

In addition, six million small businesses and 29 million private users will be exempt from infrastructure taxes until the end of the year, taxes which, among other things, cover subsidies for renewable energies.

As for the gas bill, the soaring prices should be painless for the beneficiaries of the "social bonus", for others the VAT will be reduced.

Measures in Spain too

In Spain, a decree-law approved last week provides for a 22% reduction in the monthly bill until December.

Objective: that over the whole year the consumer does not pay more than in 2018. The package of measures includes tax reductions.

An auction system must change the model on which the price is set.

The government also wants energy companies to return some of their windfall profits.

At European level, the Commission has said it is ready to validate temporary measures.

It will also propose a “ 

toolbox

 ” to accelerate the development of renewable energies and so that States can make group purchases on the energy markets.

► To read also

: The rise in gas prices, an explosive cocktail

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  • Energies

  • consumption

  • Trade and distribution

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