France to ban increasing gas tariffs by over 15%

France will budget 16 billion euros ($16 billion) to limit power and gas price increases to 15 per cent for households and small companies next year to ease the burden of the energy crisis on consumers.

The French government was among the first in Europe to implement measures shielding consumers and companies from a surge in energy prices, when it froze gas bills in October 2021 and capped the increase in electricity bills at four per cent last February, according to Bloomberg.

While the caps on energy prices proved effective in dampening inflation compared with the rest of the euro area, the cost to the state spiralled after Russia invaded Ukraine.