Corinne Chaton (EDF R&D) et Marie-Laure Guillerminet (ADEME)
Titre : Coverage for fuel poverty
To cope with rising energy prices, the French government has implemented an energy price shield in the fall of 2021 in order to “continue to protect the French households and their purchasing power” (sic Gabriel Attal, September 3rd, 2022). Following the “roadmap” of 20/21 October 2022, several European Union countries such as Germany or Autria are taking up this idea of a tariff shield to contain energy prices. The United Kingdom also presented an amending budget from October 31 including the tariff shield promised by Lizz Truss. This tariff shield is a short-term and emergency measure that benefits all French economic agents who benefit from regulated energy tariffs. We will focus here on households. Among other things, it helps limit the expenses of precarious households that also receive other forms of assistance and prevents some of them from falling into energy insecurity. We propose another measure to cover households against fuel poverty: an insurance that guarantees a minimum level of energy to households. It applies to non fuel-poor households and is differentiated over income and housing characteristics. Indeed, guaranteed minimum levels of energy supply and discounts are household specific.
To illustrate our results, we focus on non-fuel poor households living in all-electric dwellings and whose electricity price is EDF’s Blue peak/off-peak pricing scheme. We estimate that 2.06 TWh are needed to guarantee the minimum level of electricity to these households. This measure will be less expensive than the cost of the tariff shield for these households as long as the sourcing electricity price stays under 803€/MWh!