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Why the prices of electrical goods are set to rise in France

Now could be the best time to buy that new fridge-freezer you have been considering, as global shortages of key parts mean prices of electrical goods at stores across France are set to rise from September, experts warned.

Why the prices of electrical goods are set to rise in France
Photo: Christophe Archambault / AFP.

French household appliance giant Groupe SEB – which owns the Seb, Tefal, Rowenta, Moulinex and Krups brands – has already confirmed it will add between 5 percent and 10 percent to the price of a range of its products.

Specialist stores already reported price increases from manufacturers and while many have so far resisted passing on the additional cost to consumers, that trend is unlikely to last.

A combination of increased worldwide demand for a range of appliances, notably coffee makers, bread machines and multi-function kitchen aids, combined with a shortage of parts because of temporary Covid 19-related factory closures in Asia and elsewhere is, in part, to blame for the impending price rises.

In some cases, parts are so rare that waiting times for deliveries have jumped from a matter of a few weeks to a year.

Meanwhile, increases in the cost of transportation and raw materials has squeezed manufacturers’ margins to the point they have no choice but to pass on increases. Seb said in a statement that, between July 2020 and February 2021, the cost of PVC rose 115 percent, while aluminium prices rose 27 percent, and cardboard costs jumped 14 percent.

The pressure on prices is set to remain until at least the end of the year, experts predict, as factories catch up on production.

Member comments

  1. It’s been happening over the last year for computer components, especially graphic cards because of a chip shortage.

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ENERGY

France offers grants up to €1,500 to replace oil-fired boilers

Financial aid of up to €1,500 is temporarily available to households looking to replace oil-fired boilers with a more environmentally friendly heating systems. 

France offers grants up to €1,500 to replace oil-fired boilers

The temporary ‘coup de boost’ aims to encourage households to replace their oil-fired heating systems (chauffauge au fioul) and is in addition to the ‘coup de pouce chauffage’ (heating helping hand) scheme that is already underway to help under the energy saving certificates scheme (CEE).

All households that are primary residences – this aid is not available to second-home owners – equipped with an oil-fired boiler can benefit, with the amount for which they are eligible means-tested according to household resources and the replacement system chosen. 

Households with modest incomes benefit from a higher premium.

To benefit from the new temporary bonus, households must replace their individual oil-fired boiler with a more environmentally friendly heating system:

  • heat pump (air/water or hybrid);
  • combined solar system;
  • biomass boiler (wood or pellets);
  • connection to a heating network supplied mainly by renewable or recovered energy.

The total amount of financial help from the two schemes is €4,000 to €5,000 for low-income households; and from €2,500 to €4,000 for middle and high-income households.

For the connection of an individual house to a heating network, the amount of the bonus increases from €700 to €1,000 for low-income households; and from €450 to €900 for middle and high income households.

Estimates for the replacement of an oil-fired boiler must be accepted between October 29th, 2022, and June 30th, 2023, and work must be completed by December 31st, 2023.

The Coup de boost fioul aid can also be combined with MaPrimeRénov to replace an oil-fired boiler, meaning the least well-off households in France can benefit from aid of up to €16,000 to replace an oil-fired boiler with a pellet boiler or a combined solar system.

Since mid-April 2022, MaPrimeRénov’ financial aid has increased by an additional €1,000 for the installation of a renewable energy boiler. This can now reach €11,000 for the most efficient boilers (pellet boiler, combined solar system) and for households with modest incomes.

It must be noted that the installation of a very high energy performance gas boiler will no longer be eligible for MaPrimeRénov’ as of January 1st, 2023.

Find more details on the scheme HERE.

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