Big change in sight for electricity prices from February 1st. While some customers will see their bill drop significantly, others will face an increase.
It was a long-announced and eagerly awaited change. In accordance with its mission, the Energy Regulatory Commission (CRE) has just sent the Government its proposal to modify the Regulated Electricity Sales Tariffs (TRVE), for application from February 1, 2025.
As expected, and after two years of soaring prices partially offset by the “tariff shield”, the regulator proposes a notable reduction of 15% in the average level of TRVE. A breath of financial oxygen for French consumers, or at least for those who will actually benefit from this reduction.
On the one hand, TRVEs only apply to customers who have subscribed to a contract at regulated rates, or indexed to regulated rates. On the other hand, the final price of the kWh of electricity paid by the consumer depends on several components: production, delivery and taxes. However, the latter two will increase.
In its calculation of the average level of TRVE, the CRE takes these different components into account. Thus, the announced 15% reduction will translate into an average reduction of the same magnitude on the invoices of customers benefiting from a TRVE contract. For example, the Commission indicates that a couple of two people in an apartment will make a saving of €107 on their annual consumption, and that a family of four people in a house will be able to expect a reduction of €651 on their bill in 2025.
For consumers who have subscribed to a market offer, two scenarios must be considered. If their contract is indexed to the TRVE, they will benefit from the 15% reduction in regulated prices. On the other hand, customers on non-TRVE contracts will not benefit from this, and will certainly even see their bill increase.
This increase will be due to the conjunction of two factors. The increase in the tariff for the use of public electricity networks (TURPE), initially planned for November 1, 2024 and exceptionally postponed to February 1, 2025, and the increase in taxes on electricity, consequence of the end of the “shield tariff”.
However, these non-TRVE market offers will not necessarily become more expensive than regulated rate contracts. Indeed, some of these offers already offered lower prices than the TRVE, and the increase planned for February 1, 2025 will not necessarily reduce this gap to zero. In either case, it’s a good time to take a look at your contract and compare it to competitors’ offers.
In fact, it is now easier and faster than ever to change electricity supplier to benefit from more advantageous rates or conditions. Most procedures are carried out entirely online or by telephone, and no longer even require physical intervention on the part of the supplier. However, remain vigilant during your prospecting, because false good deals and tricked contracts exist, and it is therefore better to take the time to read and understand the offers offered to you.