Electricity prices: another 10% increase, when and for whom?


Electricity prices: another 10% increase, when and for whom?

ELECTRICITY PRICE. A further increase in the price of electricity has been announced. It will be active from August 1 and will represent an additional charge each month for households.

[Updated July 18, 2023 10:43 AM] The ax has fallen (again). After an initial increase in February of 15%, electricity prices via the regulated selling price set by the State will experience a further increase, effective August 1, 2023. This increase will be 10% and is therefore added to the 15% already noted on household bills since last February.

Almost all households are affected since all customers with contracts with meter power up to 36 kilovolt-amperes will be affected. However, a very large majority of households have subscribed to a contract with a power ranging from 3 kVA to 12 kVA. According to Engie, the most common power among its customers is 6kVA.

This increase was capped at 10% after application of the tariff shield, specifies the government. Without this device, the increase could have reached 75%, according to the Energy Regulatory Commission (CRE) which had issued a recommendation for a 74.5% increase, arguing in particular for an increase in current prices on wholesale markets and transport costs.

This increase affects all subscribers to a regulated sales contract (TRV), and those whose prices are indexed to the TRV. VSEs and SMEs are also affected. The government specifies that it wants to maintain this tariff until the end of 2023.

This new increase will have a direct impact on the electricity bill of French households. "The average electricity bill for a French household is now around 1,640 euros. It would therefore increase to around 1,800 euros," a government adviser told Le Parisien. That is about 160 euros more per year and a little more than 15 euros per month. And this could continue because the executive has given many clues in recent months on the gradual disappearance of the tariff shield on electricity, the Minister of the Economy Bruno Le Maire evoking last April the horizon of “early 2025”.

Will this new increase be accompanied by a new exceptional energy check? This check, announced and paid at the end of 2022, was added to the traditional energy check, to offset the effects of the rising cost of living. 12 million households were concerned. Another possibility to save money: MaPrimeRénov'. It is an aid for energy renovation offered by FranceRénov', calculated according to your income and the ecological gain of the work. Pellet boilers, heat pumps and the insulation of walls from the outside are particularly taken into account by the device.

The price of electricity has skyrocketed in France during the year 2022 with the outbreak of war in Ukraine and a global battle in the energy market. Direct consequence: customers of alternative suppliers have found 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% more per invoice and per customer. These suppliers are not modeled on the regulated tariff. Bottom Line: If you take out a contract with this type of energy supplier, you may end up paying a high price for the increase. 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.

Will this spike in wholesale prices have any 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. However, this was subject to three successive increases: 4% at the end of 2022, 15% in February 2023 and 10% on August 1, 2023.

At EDF, you have the choice between regulated tariffs and 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 homes with "a minimum electricity subscription of 9 kVA [and which have] an alternative heating mode, such as wood heating for example", we explain on the EDF site. To find out about EDF's market offers, visit the website. Want to know more about how electricity prices are calculated? We answer your questions. Looking to switch providers in the current environment? Consult our dedicated file before you start:

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 visit the website of the national energy mediator: energie-info.fr. You will find in particular a comparator, here, in which you will have to 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).

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 learn 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:

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

Total, Direct Energie... What alternatives to EDF?

Looking to leave EDF's regulated tariffs? You're not the only one: every month, 100,000 customers say goodbye to them, according to the Energy Regulatory 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 lean towards a market offer or regulated tariffs, you can find all the offers online.