After an encouraging start to the summer in terms of energy prices, enthusiasm may well fade as August approaches. Indeed, according to recent information shared by Les Echos and confirmed by the Ministries of Economy and Ecological Transition, a further increase of around 10% could well hit electricity prices, after a first increase last February, of around 15%. This follows a gradual reduction in the tariff shield that has been in place for two years, i.e. for two winters.
“From August 1, the tariff shield will continue to cover the protection of French people for more than a third of their bill, around 37% of the electricity bill, which continues to be the level currently provided. , around 43%”, explains the government, which insists that the electricity price in France will remain among the lowest in Europe. It must be said that the government has a point. The note could have been much saltier. Indeed, the Energy Regulatory Commission (CRE) recommended an increase of 74.5%, taxes included, in view of the increase in energy costs. Finally, the government therefore decided to limit this increase to 10%.
According to the Energy Regulatory Commission, no less than 21.6 million residential customers benefited from the regulated electricity tariff as of December 31, 2022. In addition, 1.5 million “small” non-residential customers were at the tariff regulated on the same date. The electricity tariff is revised twice a year, in August and February. The government has announced that it will gradually put an end, by the end of 2024, to the tariff shield on electricity prices put in place to fight against inflation.
Soaring prices. We have heard this expression very often for almost two years. And it’s not about to stop. The average French bill, around 1,700 euros per year, should therefore cross the 1,850 euro mark. In other words, if we calculate this increase, it is similar to an additional cost of 150 euros each year and no less than 13 euros per month.
Even if this increase should affect all French households, it will also affect very small businesses (traders and businesses) connected to a meter with a power of up to 36 kilovolt-amperes. This Monday evening, the government thus seized the Higher Energy Council on regulated electricity sale tariffs, in order to seek its opinion on this upcoming increase.
As mentioned above, the electricity tariff is reviewed twice a year, in August and February, and the next increase should therefore be expected for February 2024. It must also be said that the energy shield is very expensive for the State. . At the end of 2022, the government assessed its cost at 110 billion euros between 2021 and 2023.
The reduction in the tariff shield for electricity and gas will thus allow savings of nearly 14 billion euros in the 2024 budget. But that is not all. We must also add the end of support counters for companies that consume a lot of energy, as revealed by Capital. “As soon as we have to save money, we must in particular get out of the specific systems that we put in place during the inflation crisis”, adds Gabriel Attal, Minister Delegate for Public Accounts. A decision which therefore risks not being without consequences for the portfolio of the millions of French people concerned.