The increase in electricity prices on February 1 will not affect everyone in the same way.
As announced, electricity prices will soar in 2024 with an increase announced from February 1. This “tariff bamboozle”, as denounced by the consumer association UFC-Que Choisir, results from the increase in the internal tax on final electricity consumption (TICFE). This increase will affect millions of households since the large number of subscribers to EDF’s regulated tariffs will be particularly affected.
But not everyone will be in the same boat! If this tax increases the unit price of the kilowatt hour, it will have a greater impact in proportion on those who benefited from preferential rates. The lower the price per kilowatt hour, the higher the tax increase will be proportionately, Capital magazine recently pointed out. In other words, this means that those who currently benefit from reduced rates will see their bills proportionately increase more significantly than others.
Let’s take an example to see it more clearly. Subscribers to the classic regulated tariff today pay 22.76 euro cents for their kilowatt hour. They will see electricity prices rise by 8.6% on February 1. Conversely, those who have subscribed to the very popular peak/off-peak option will experience an increase of 9.8%. The gap between the two prices will therefore narrow. As a reminder, this 9.8% increase will result on average in a surplus of around 160 euros per year according to initial estimates.
It will be even worse for another category of EDF customers! These are those who have subscribed to an offer with the “Erasing peak days” option known as EJP. This is an offer launched in the 1990s by EDF and which is no longer marketed today. However, it would still concern 400,000 customers in France. For them, February 1 will sound like a cold shower with an increase of more than 10% in prices. The rate per kilowatt hour today, around 15 cents, will remain well below the traditional rate but the gap will be reduced there too.
For customers of the off-peak-peak hour only option, it will therefore be appropriate to scrutinize the bill and monitor their consumption over the coming months. Do you actually consume during off-peak hours, which still allows you to save money compared to a traditional package? For example, do you have energy-intensive appliances that operate at off-peak times, such as a washing machine or especially a hot water tank? Is the option still worth it? So many questions to ask ourselves in the coming months to try to slow down the increase in prices. With these significant price changes, it becomes crucial to analyze your options and perhaps consider alternatives to optimize your energy consumption and expenses.