According to Bruno Le Maire and the Energy Regulatory Commission, the normal increase in regulated electricity tariffs should have been almost 40% on February 1. The government’s tariff shield, based on lower taxes, should limit it by 4%, but this is untenable over time.
Since the fall of 2021 and an announcement by Jean Castex, the increase in regulated electricity tariffs scheduled for February is limited to 4%, thanks to a drop in taxes which represents a cost of 8 billion euros for the State. We then spoke of a planned jump in prices of around 20% if the calculation formula was respected. But the situation in the electricity market is deteriorating. So much so that the theoretical increase is today rather between 38 and 40% without government intervention.
Is the executive in a position to keep its promise of a 4% increase in the presidential election for a few months? In a confidential document from the Energy Regulatory Commission (CRE) disclosed by The Parisian, it seems obvious that the only reduction in taxes (TICFE, internal tax on final consumption of electricity) will not be sufficient because it covers only half of the increase in prices.
The dangers of straightening
The Minister of the Economy Bruno Le Maire announced this Monday on LCI that a technical solution will be found by the end of the week to limit the increase in electricity prices 4% in 2022 and save the power of purchase of households. This would include modifying the formula for calculating regulated tariffs and the stock of low-cost electricity granted by EDF to alternative suppliers in order to weather the soaring price of electricity on the markets.
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In the short term but also in a few months when it will be necessary to smooth out the shortfall for EDF and to pay the winter surcharges in a way for the holders of a blue tariff contract as for those whose contract is indexed on these same TRVs with ‘alternative operators.
Electricity: why 2022 may cost you dearly
A reform coming?
A sleight of hand is coming which worries consumer associations. The CLCV has already expressed its fundamental differences as to the principles which guide this formula for calculating the TRV (…) Indeed, it leads to an increase in the stratospheric tax-free tariff and totally unjustified in view of the truth of the costs, Judge Franois Carlier, general delegate of the consumer association which has long called for the disappearance of market offers and a return to TRVs for all customers. A solution also promoted by certain alternative suppliers who fear that they will no longer be able to assume their service.
With the Que-Chooser UFC, the CLCV is also asking for a lasting reduction in the 5.5% VAT on electricity, arguing that it is a basic commodity. long term, France hopes a reform of the European market electricity so that prices reflect real prices more faithfully in each country, whereas they are today set on the costs of gas and coal power stations, which are now peaking.
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