From the beginning of next month, we can expect a significant increase in regulated electricity tariffs in France. A 10% increase will come into effect on August 1. This rate change will impact households, craftsmen and small businesses connected to meters of up to 36 kilovoltamperes. This price increase is attributed to the gradual reduction in the tariff shield that has been in place for the past two winters.
The last increase, in February, was 15%, following a 4% rise in February 2022. Before this increase, the annual bill was around 1,640 euros. After theincrease, the bill will rise to 1,800 euros for an average electrically-heated consumer consuming 7 MWh per year, an increase of 160 euros on average.
From August 1, the tariff shield will continue to cover more than a third of French consumers' bills, i.e. 37%. This represents a slight drop from the current level of 43%. The government insists that, despite this increase, electricity tariffs in France remain among the lowest in Europe.
According to the Commission de Régulation de l'Energie, around 21.6 million residential customers (out of 34 million) benefited from the regulatedelectricity tariff on December 31, 2022. A further 1.5 million small non-residential customers were on the regulated tariff at the same date. Electricity tariffs are revised twice a year, in August and February.
The government has announced that it will phase out the electricity price shield introduced to combat inflation by the end of 2024. We must therefore anticipate this situation and consider alternatives to limit the impact of this increase on the energy budget.
From a practical point of view, here are a few avenues to consider:
With these increases, it may also be wise to review your consumption habits. Unplug unused appliances, turn off standby power, track the appliances that consume the most and consider changes such as tumble-dryers and air-drying clothes.
