The electricity bill will increase, at the latest, in January 2023. MoneyVox details what you pay each month and what will change soon.
9 out of 10 French people are affected by the rise in prices, says the Younited OpinionWay study The French and inflation, conducted in August 2022. And to cope with it, 40% of respondents have adopted the sobriety touted by the government to lower their energy bills and save money. A responsible decision, because the situation is critical. Some households that have subscribed to an electricity offer indexed to market prices have been informed of increases of up to 111%.
For those who have remained at EDF’s regulated tariffs, or who wish to return to them free of charge, the government’s tariff shield is maintained until the end of the year. But its contours will change from January 1, 2023. After a cap of 4% in electricity price increases in 2022, they will increase by 15% on February 1, 2023. That is an average increase in the monthly bill of 20 euros per month for those who heat themselves with electricity.
This surge in prices deserves to be detailed, because the whole bill is not affected in the same way. Roughly, it is divided into three parts: the price per kilowatt hour (kWh), the subscription price and taxes.
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The price per kilowatt hour
He is the object of all fantasies and responsible for all evil. It was its big brother the megawatt hour that saw its price goes from 85euros to 1000euros between August 2021 and August 2022 in wholesale markets. It is therefore the kilowatt-hour (kWh), i.e. a lower unit of measurement and more suited to the calculations of a household, which is concerned by the regulated sales tariffs also called TRV or blue tariffs. It is on its price that the State intervenes with its tariff shield. It represents 36% of the total bill.
EDF’s blue tariff sells the kWh at a single price all day, i.e. 0.1740 euros including tax according to the prices of August 1, 2022 for a meter with a power of 6 kVA. If you opt for a contract between peak hours and off-peak hours, the price per kWh in HP is 0.1841euro including tax and that of HC is 0.1470euro including tax.
Via purchases of electricity on the markets, alternative suppliers have tried to attract customers in France. An example: Ohm recruited in June on the basis of a kWh price 11% lower than the TRV. But the situation has turned around. with the surge in prices, its prices will jump by more than 80%, compared to TRVs, in October. As a result, he advises his customers, like other suppliers, to join EDF’s TRVs.
In the actual context, EDF’s regulated tariff is the best protection for the consumer, unless you benefit from a TRV index contract or a so-called fixed offer from an alternative supplier. This means that the price per kWh is guaranteed for 12, 24 or 36 months.
The subscription price
After the price of energy, there is that of the subscription which represents 27% of the total. It depends on the chosen meter power: 3, 6, 9, 12… KVA. The power output determines the maximum amount of electricity you can use simultaneously. It also depends on the type of contract taken out. Its price is fixed, unlike that of kWh, whatever your level of consumption. It is also freely set by the supplier. EDF, for example, charges the subscription in advance, generally two months. Its price, which increased by 15 euros in 2020, is 136.12 euros per year for a contract at the regulated tariff with a meter with a power of 6 kVA. If you heat yourself with electricity, opt for 9kVA and an annual subscription of 170.16 euros including tax per year. A price substantially identical to that proposed with the Tempo offer.
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The HP/HC option offers an annual subscription of 144.32 euros for a 6 kVA meter and 183.12 euros for a 9 kVA meter.
The subscription is an important element of competition and I do not believe that it can increase significantly in the coming months, given the overall situation in the sector, explains MoneyVox Jean-Sbastien Degouve of the broker Opra nergie. Despite everything, in August, the supplier Mint Energie sent an email to its customers benefiting from a fixed price contract (not subject to fluctuations in the price of kWh) to announce that the price of their subscription would soon be more expensive.
The taxes
In 2021, they weighed precisely 37% of the total consumer bill. Four in number, they were at the heart of the debates between the presidential candidates last spring. Some wanted activate this lever to sustainably contain soaring prices. The only effective lever would be a reduction in the VAT currently fixed at 20% on consumption and 5.5% on the subscription, confirmed the CLCV. We even tax environmental taxes, insisted Antoine Autier, head of studies at UFC-Que Choisir.
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Here is the detail:
The Transmission tariff contribution (CTA), levied on the price of the subscription, finances the specific pension scheme for agents in the electricity and gas industries. It is therefore affected by EDF and its subsidiaries RTE (in charge of the network) and Enedis (in charge of distribution), but also by Engie (formerly Gaz de France) and by GRDF (Gaz network distribution France).
The Taxes on final consumption of electricity (TCFE) are collected by municipalities and departments. Their level varies according to the public policies put in place.
The Contribution to the public electricity service (CSPE) has increased by 12% for ten years, and was originally used to finance renewable energies. Since 2017, it has been transferred directly to the general state budget. In particular, it finances systems such as the energy check. Its amount has been €22.5 excluding VAT per MWh since 2015.
The Value Added Tax (VAT)finally, applies up to 5.5% on the subscription (and therefore also on the CTA) and 20% on consumption (and therefore also on the TCFE and the CSPE).
These taxes should not change in 2023 although the Minister of Economy Bruno Le Maire estimated this week that the tariff shield, version 2023, was going to cost the State 16 billion euros, including 5 billion for electricity. But to fill the coffers, Bercy intends to take advantage of the price per megawatt hour sold at exorbitant market prices. Thanks to the Arenh mechanism, the purchase price is limited in France, public finances will therefore tax the profits of suppliers up to 19 billion in 2023.