Electricity price: +15% in 2023. What solutions for the government?

Electricity price 15 in 2023 What solutions for the government

ELECTRICITY PRICE. Electricity tariffs will increase by 15% from February 2023. Economy Minister Bruno Le Maire is considering a Europe-wide solution.

[Mis à jour le 21 septembre 2022 à 11h31] How to fight against the rising cost of energy? This Wednesday, September 21, the Minister of the Economy Bruno Le Maire was the guest of “4V” on France 2. He took the opportunity to launch a first track by announcing that the government could try to obtain a “revision of the market European Union that lowers energy prices”. Good news, as the price of electricity will increase by 15% in February 2023. For the Bercy tenant, “these prices are totally abnormal, delusional and dangerous for our economy”. Many businesses are being squeezed by their energy bills. A surge in energy prices that the government has therefore already tried to contain with the extension of the tariff shield beyond the year 2022. This tariff shield, which made it possible to contain the soaring prices up to 4%, will rise to 15% from 2023, gas prices are also affected from next January. The increase in household electricity bills will therefore be 15%, which represents on average 20 euros more per month to pay. “Without the tariff shield, the increase would have been 180 euros per month for electricity” explained Prime Minister Elisabeth Borne last week.

In an attempt to help the most modest households, the government has also decided to set up a brand new system: an exceptional energy check. This check will be added to the traditional energy check, but before the end of 2022 to offset the effects of the rise in the cost of living. 12 million households are affected. On the European level, the Prime Minister declared that “only sobriety and European solidarity will allow us to avoid rationing during a harsh winter”. Thus, a cap on the price of gas, a downward revision of the cap on the price of electricity, a decoupling of the prices of gas and electricity as well as a taxation of rents should be put in place at the continental scale.

The price of electricity soared in France during the month of August, exceeding 1,000 euros. Direct consequence: the customers of alternative suppliers find themselves trapped by this unprecedented increase because these famous suppliers are subject to the wholesale price, and its impressive fluctuations which sometimes represent up to 50% additional per invoice and per customer. These suppliers are not modeled on the regulated tariff. Result of the races: if you sign a contract with this type of energy supplier, you risk paying the increase at a high price. Be aware, however, that a solution exists to overcome this kind of extreme situation: the principle of reversibility. In other words, you have the option of returning to an incumbent supplier, at the regulated rate, by making the request to a supplier such as EDF.

This increase in the wholesale price of electricity can be explained by the temporary shutdown of 32 French nuclear reactors and the insane rise in gas prices. If next winter turns out to be particularly cold, restrictions may be put in place, but “they will not concern households” as Prime Minister Elisabeth Borne said on France Inter on September 2 after the Defense Council on energy security. Agnès Pannier-Runacher also made it clear that the French energy giant “EDF has undertaken to restart all the reactors for this winter”. That is to say the 32 reactors currently shut down, enough to take the measure of the exceptional situation in which the country finds itself. The President of the Republic Emmanuel Macron spoke from the Elysée Palace on Monday, September 5: “The price on this European electricity market must be formed in a much more coherent way and in connection with production costs. The price of electricity on the European market is far too dependent on marginal contributions, in particular those of gas at times of peaks, which means that you have an electricity price that is disconnected from the reality of the costs of production.”

Will this spike in wholesale prices have a real impact on your electricity bill? Not really. For the time being, customers of incumbent suppliers like EDF are covered by the tariff shield put in place by the government. In other words, the increase in electricity prices is capped at 4% until the end of 2022. We advise you to favor these offers indexed to the regulated tariff, like EDF, it is set by the authorities. public. The prices set by the State via the “EDF blue tariff” (regulated) are available here. Be careful all the same, electricity prices will increase by 15% in February 2023 as announced by Elisabeth Borne on September 14.

With the increase of 15% scheduled for February 2023, each household will have to pay 20 euros extra each month. A substantial sum for a good number of modest households which should be eligible for the new exceptional energy checks announced by the executive on September 14. Depending on your situation, the amount varies from 100 to 200 euros.

As of August 1, electricity prices have already been revised upwards. This increase is due to the evolution of the TURPE (tariff for the use of the public electricity network), a tax which aims to ensure the maintenance of the network and its modernization. The average increase is 0.91% for MV/LV consumers. It is 1.39% per year for the TURPE 6 period (2021-2025). HTB consumers, they show an increase of 1.09% and 1.57% per year. Has your electricity consumption jumped in recent months? It must be said that with successive confinements, sometimes cooler temperatures and teleworking, there is enough to increase the final bill. In this context, are you looking for alternatives to pay less? Linternaute.com directs you to its dedicated file in order to compare electricity prices :

At EDF, you have the choice between regulated tariffs and the market offers. In the first scenario, as explained above, prices are set by the public authorities. EDF offers three distinct offers: a basic offer (where the price per kWh remains the same whatever the time and frequency), a peak-off-peak offer (where the price per kWh is more advantageous between 10 p.m. and 6 hours) and a so-called “Tempo” offer (where the price per kWh varies according to the time of day and the days of the week).

The latter corresponds to households with “an electricity subscription of at least 9 kVA [et qui disposent] of an alternative mode of heating, such as heating with wood for example”, explains one on the site of EDF. To find out about EDF’s market offers, visit the website. Would you like to know more about how electricity prices are calculated? We answer your questions. Are you looking to change supplier in the current context? Consult our dedicated file before you start:

If we trust the latest Eurostat data, the price per kWh in France will reach 0.1946 euros in 2021, which is much lower than the average for the 27 countries of the European Union (0.2203 €/kWh). The tariff is much higher in countries such as Germany (€0.3193/kWh), Denmark (€0.2900/kWh) and Belgium (€0.2702/kWh).

* OlaWatt is a site of the Le Figaro-CCM Benchmark group, like Linternaute.com

It can sometimes be very difficult to tell the difference between the different offers on the market, as there are so many parameters to take into account (read above).

You can also go to the website of the national energy mediator: energy-info.fr. In particular, you will find a comparator, here, in which you must specify your current tariff option, the power subscribed and your electricity consumption. UFC-Que Choisir also offers a comparator, here. You will then obtain an informative list of the most advantageous offers according to your profile. When you compare offers, always bear in mind the power you subscribe to, the type of pricing you want and your annual consumption (expressed in kWh).

Are you looking for another comparator? Olawatt by BeMove* also offers a comparison tool. You must enter your address, as well as your annual consumption and then your contact details to receive a summary of your request.

Are you looking to undertake energy renovation work in your home? Do you know My Prime Renov’? This system was put in place last year to replace the energy transition tax credit (CITE). Since January 1, this famous bonus concerns all households, regardless of their level of income. The amount of financial assistance, paid at the end of the work, depends on the household’s resources, the location of the accommodation and the nature of the work. To find out more, see our dedicated article:

In addition to taxes, the price of electricity that you will pay depends on multiple factors. Linternaute.com summarizes the criteria for you:

  • The subscription you take out, whether it is EDF regulated tariffs or a market offer : you generally have the choice between two contracts, a basic rate and a peak-off-peak offer. In the first case, the price kilowatt-hour (kWh) of electricity remains the same. In the second scenario, it evolves according to consumption peaks. Clearly, it is cheaper at night, between 10 p.m. and 6 a.m.
  • Your consumption: lighting, household appliances, computer, television, internet installations… All of this equipment consumes energy, even if it is on standby! You are looking to reduce your consumption. Check out our article: Saving electricity: our advice
  • The power of your electric meter : 3,6,9 or 12 kilovoltampere (KVa).
  • The offer: the prices are obviously not the same from one supplier to another.
  • The frequency of invoicing : it goes without saying that it can have an impact on the final invoicing. If you use your equipment more in winter, for example, this will inevitably affect your bill.

Would you like to know more about what makes up the price of electricity? Consult our dedicated file:

Total, Direct Energie… What alternatives to EDF?

Are you looking to leave EDF’s regulated tariffs? You are not the only one: every month, 100,000 customers say goodbye to them, according to the Energy Regulation Commission. By changing supplier, large consumers, who consume 8,000 kWh, can save “a hundred euros” per year, according to 60 million consumers in its October 2019 edition. Total Direct Energie, Eni, Happ-e de Engie, EDF… Whether you are leaning towards a market offer or regulated tariffs, you can find all the offers online.