Electricity prices: how did the government limit the rise to 4%?

ELECTRICITY PRICE. The government has limited the increase in the price of electricity to 4%. After multiple negotiations with EDF and certain budgetary restrictions, the bill for the French will not explode by 45% as envisaged.

[Mis à jour le 2 février 2022 à 09h10] The French can now breathe, their electricity bill will not rise by 45%. Indeed, the increase is limited to 4% February 1, 2022. After intense negotiations with EDF and removing the internal tax on final electricity consumption (at a cost of 8 billion euros), the executive managed to limit the disaster for French households. In other words, this internal tax has gone from €22.50 the megawatt-hour (euro/MWh) to 50 cents.

Guest on the set of Sonia Mabrouk from Europe 1, Tuesday February 1, 2022, the Minister of the Economy Bruno the Mayor defended government policy, which he has always considered to be in the interests of citizens: “I cannot allow it to be said that we scuttled EDF, it was the only way to protect the French against an outbreak which would have been unbearable for them”. Note that the electricity bill will go from 1,000 euros to 1,710 euros in Spainit will explode in Italy from €1,000 to €2,290where it will increase by one forty eurosapproximately, in France. He continues: “I think morning, noon and evening of my compatriots. EDF is 84% ​​owned by the State, EDF must protect the French. It is responsibility, and my conception of public services” in response in particular to certain critics who see in this intervention, EDF sacrificed by the executive.

In addition, he told Le Parisien an increase “by 20 terawatt hours (TWh) in the volume of nuclear electricity sold at a reduced price by EDF to its competitors, to increase it exceptionally from 100 to 120 TWh”. “This measure will automatically be passed on to the bills of individuals, whether households or businesses that buy their electricity at the regulated rate,” he asserts. “These volumes will be accessible to all consumers, individuals, communities and professionals, via their supplier, according to terms which will be specified very soon,” said the Ministry of Ecological Transition in a press release.

And concretely, what impact on your bill? “To be very concrete, for a 60 m² apartment, the average electricity bill is 1,000 euros. Without this agreement, it would have increased by 350 euros”, assesses the tenant of Bercy. “There, it will increase by 40 euros. For a house of 140 m2, with a bill of 2,000 euros, it would have increased by 650 euros, it will increase by 80. The decision we have taken is massive and effective”.

Should we therefore expect a catch-up, and therefore an extremely high bill in 2023? The Minister of the Economy wants to be reassuring. “Absolutely not. There will be no catch-up leading to a further increase in 2023. It is the State and EDF who will bear the cost of this measure”, he underlines.

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:

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 of kWh in France reached 0.1893 euro in 2020, which is much less than the average of the 27 countries of the European Union (0.2134 € / kWh). The tariff is much higher in countries such as Germany (€0.3043/kWh), Denmark (€0.2833/kWh) and Belgium (€0.2792/kWh).

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

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:

EDF’s regulated tariffs, or “blue tariffs”, have already increased by 1.6% on February 1, resulting in an additional 15 euros per year, had estimated the Energy Regulation Commission (CRE). You do not depend on regulated tariffs? Unless you opted for a fixed price offer, you should also be affected by this increase in electricity prices.

Expect an increase in your bill in the months to come. In addition to an increase in blue tariffs, there is also a simplification of taxes, implemented as part of the 2021 Budget. What to choose, it aims to modernize one of the four taxes making up the price of electricity: the local tax on final electricity consumption (TCFE). This is imposed by local authorities on energy suppliers who, in turn, pass it on to consumers’ bills. Until now, this tax was set by local authorities, which could impose a reduced or zero rate. Within the framework of the finance bill, this competence is transferred to the tax administration (DGFIP).

As a result, the rates will be revised upwards, “the maximum rate being planned to apply in all communities in 2023”, explains the association on its site. De facto, taxation will increase for many municipalities (7,608 by 2023, according to the impact study of the 2021 budget). The additional cost is estimated at between 80 cents and 55 euros per household and per year.

Last component of this millefeuille of increases: the tariff for the use of public electricity networks (TURPE), which is used to maintain the electrical network. “The CRE retains average tariff increases of 1.57% per year for RTE and 1.39% per year for Enedis, i.e. an increase of around €15 in the annual bill of an individual by 2024” , explains the Commission in a Information letter. You are therefore not ready to see your electricity bill reduce immediately. Do you have questions about the prices charged by EDF? How are prices calculated? Linternaute.com explains everything in its article dedicated to electricity prices.

In the context of the health crisis, are you looking to save money? Rent, subscriptions… Linternaute.com has studied for you the various expenditure items and the best way to optimize them. Consult our file without further delay:

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.

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 (CITED). 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: