Energy: Restraint is essential

To avoid any paralysis of the electricity network, individuals and Monegasque enterprises were asked to reduce their consumption. The result has been a 10% drop in consumption this winter.

A winter marked by untimely cuts in the supply of electricity? This was a scenario everyone feared, with the energy crisis aggravated by the war in Ukraine. With the objective of avoiding any blackouts, Société Monégasque de l’Électricité et du Gaz (SMEG) devised a shedding plan that was approved by the government at the beginning of December.

To avoid occasional power cuts in a country that according to SMEG consumes approximately 500 gigawatts an hour every year, the people of Monaco were asked to reduce their energy costs, especially during peak times when consumption is at its highest (between 8:00 a.m. and 1:00 p.m. and between 6:00 p.m. and 8:00 p.m. during the week in winter)*. If this voluntary reduction proved not to be sufficient, SMEG had the right to reduce the voltage by a minimum of 5% across the entire electricity network, and then increase it. In the event of a critical scenario, "highly localised" power cuts decided in collaboration with the government, "lasting for no more than two hours and at very precise times to be announced in advance", were envisaged, except for the medical sector and "essential" services for the functioning of the State, including schools.

Happily, in the end, the Principality did not experience any such occasional electricity cuts this winter. Between 1 October and January 2023, a reduction in energy consumption of approximately 10% was reported for both individuals and small enterprises, and for SMEs and large companies (such as the Princess Grace Hospital, industry and the hotel sector).

Turning off the lights

To encourage restraint in the consumption of energy, the State decided to set a good example. As part of the government's energy management plan, the administration must limit its heating temperature to 19 degrees, with a tolerance of two degrees in public buildings, excluding the Princess Grace Hospital and schools. A requirement to turn off the lights in public buildings and bus shelters was also imposed after 10:00 p.m. Retailers were asked to turn their signage off between 11:00 p.m. and 6:00 a.m. until 30 April.

Symbolically, the traditional ice-skating rink at Port Hercule was replaced by a roller-skating rink, as was the "chemin de glace" in Place du Casino. "We must not forget that in a Mediterranean country like this we often enjoy quite favourable weather conditions in winter. We need to acquire good habits now, because with air-conditioning, it's during the summer that the peaks of energy consumption are at their highest", Céline Caron-Dagioni recalls, appealing to every citizen to adopt good eco-gestures. In particular using shared transport, turning off appliances on standby (which represents 10% of household electricity consumption) and installing energy-efficient devices for the most energy-intensive uses in our daily lives, such as LEDs, refrigerated cabinets with doors (for retailers), NF-certified inertia radiators and efficient windows. To provide financial support for equipping households and enterprises, the government has also reactivated an aid scheme for the purchase of small items of equipment. The scheme was created as part of the Post-COVID Recovery Plan and is managed by the Mission for Energy Transition (MTE), with a ceiling of 3,000 Euro. The installation of collective heat pumps to replace boilers is also supported by a subsidy equal to 30% of the price of the equipment and the implementation studies.

* The status of voltage in Monaco can be seen virtually live on the "electricity forecast" published on the www.smeg.mc website. Three different colours (green, orange and red) indicate the voltage status in Monaco. Load shedding will be activated in the case of a red forecast.

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A tariff shield for 2023

The most important measure in the government's plan is undoubtedly the tariff shield that has been in effect since 1 January 2023 for a period of one year in order to reduce the energy bills of individuals and economic actors in Monaco. If the tariff shield were not in place, "the increase in the electricity tariff (would be) an average of 75% for individuals and 90% for large companies" reports Minister of State Pierre Dartout. There are various rates in effect: 15% for individuals and small enterprises (the blue tariff), up to 35% for medium and large enterprises (the yellow tariff) and 45% for the largest private and public consumers (green tariff). This tariff shield represents a budget of 30 million Euro for the Monegasque State.