how much will your bills go up this year?
1er In February, after gas, the regulated tariff of electricity increases. That’s all that will change in terms of price shields this year.
The regulated electricity tariff increases by 15%er February
The regulated electricity sales tariff (TRV), which is reviewed once a year in February, is determined by the state at the proposal of the CRE (Energy Regulatory Commission). The latter especially takes into account the wholesale prices of electricity. They exploded in 2022 due to the war in Ukraine. Even if they are in recession now, they remain high. In order to prevent the increase of payments, the state introduced a “tariff shield” last year, which is a limit (with 4%) on the evolution of the tariff. On February 1, 2023, the increase will be “only” 15% (instead of
99%, according to CRE calculations). So much so that a customer consuming 8,500 kWh could see their annual bill drop from an average of €1,604 to €1,845.
Also read: Energy crisis. Decouple electricity prices from gas prices: good or bad idea?
The price of regulated gas has already increased by 15%
Gas TRV is reviewed monthly by CRE. Therefore, the government was able to revise the tariff shield from the beginning of the year. He limited the increase to 1er 15% in January (instead of 56% according to CRE). An individual consuming 13,690 kWh of electricity per year could therefore see his average annual bill go from €1,453 to €1,675, CRE calculates.
Regulated rates protect all subscribers
We will extend the tariff shield for all households in 2023.” announced Elisabeth Borne, Prime Minister in the fall. The reality is more nuanced. As for gas, the tariff shield protects 2.6 million TRV subscribers at Engie (which we have not been able to subscribe to since 2019). Also 2.4 million subscribers who subscribe to a TRV-indexed “market offer” at Engie or one of its competitors.
About six million gas subscribers remain. Among them, about 1.6 million benefit from the tariff shield, but in a limited way. To understand, it is necessary to remember that the shield is accompanied by state compensation from gas suppliers: Engie, TotalEnergies, EDF, etc. Because the latter buy gas at a higher price in the markets and sell it cheaper to the respective customers. Previously, only suppliers offering indexed contracts to TRV could receive this compensation. For reasons of competition, the government extended this measure to all contracts signed from 1er September 2022, regardless of provider. It is then up to him to pass on this state aid to his clients. But a discount does not necessarily mean a low price. In a comparison of the Energy Ombudsman (energie-info.fr), we observe that for an annual consumption of 13,690 kWh, a contract is concluded for up to 4,700 euros per year (three times more than the TRV)!
As for market offers signed before September 2022, they are not shielded.
Users with the most difficulty are those with contracts indexed to wholesale prices, Mention the services of a mediator.
Some experience astronomical increases. 5,000 of them took us over last year, which is twice as many as in 2021.
Also read: Expiry of regulated gas tariff: Consumers’ union demands extension
The regulated gas tariff will disappear
Under European law, it expires on June 30, 2023. But how will the tariff shield without TRV be applied in the second half?
Thanks to the price reference compiled by CRE” The Ministry of Energy Transition responds. 1er July, Engie TRV subscribers will therefore switch to an offer
indexed to the CRE standard, which guarantees price maintenance”. Ditto for indexed offers. What makes CLCV suspicious:
The state will subsidize suppliers (10 billion for electricity and gas in 2022, according to Bersi’s calculations, editor’s note),
requesting to apply the tariff, François Carlier, general representative of the consumer union, notes.
But what guarantees them?
It should be noted that the regulated electricity tariff (21 million subscribers in EDF) will not disappear. Beware of the sometimes misleading arguments of some direct sellers.
Three questions for Emmanuelle Vargon, President of the Energy Regulatory Commission (CRE).
Gas: the shield can be applied without regulated tariffs
The regulated gas tariff (TRV) will disappear on 30 June 2023. What do you say to CLCV fearing a tariff hike?
Regulated tariffs and tariff shields should not be confused. The end of the regulated tariff does not mean that the French will no longer be protected. Protecting them is the tariff shield imposed by the government. And this shield can continue to apply without the regulated tariff.
The Energy Regulatory Commission has committed to producing a price reference system to replace the gas TRV. This will allow for the calculation of public compensation for energy suppliers who pass on tariff reductions to users. This price will be very close to the benchmark TRV.
The price of gas has fallen. Is the price tag still attractive?
The tariff shield remains protective. It capped growth at 15% in January 2023. Without this shield, the real increase in the regulated tariff would have been 56.7%. Last year, the difference was even more noticeable: almost 100%.