French electricity bills rise from February 1st
Households in France will see steeper electricity bills from February 1st, with both basic and 'peak-off-peak' rates increasing.
The latest increase will be 8.6 percent for those on basic rate plans (which most households are on), and up to 9.8 percent for those who use 'peak-off-peak' (tarifs heures pleines-heures creuses) plans.
Because France's electricity giant EDF is partially state-owned, the government approves tariff rises.
Finance minister Bruno Le Maire said: "For 97 percent of French households, the increase will be below 10 percent".
He added that "this is the last increase for 2024", saying that the next price rise would not be until February 2025.
This marks the fourth increase in electricity bills in the last two years, with prices having risen approximately 44 percent since February 2022, according to calculations by Le Parisien.
Normally electricity tariffs are adjusted in February and August, but the government has frozen several increases since the Covid pandemic and the Russian invasion of Ukraine, in order to help control increases in the cost of living.
How much does that mean for average households?
On average, households will pay around €100 more per year.
A four-room home heated by electricity only could see bills increase by €18 a month, while a one-bedroom apartment heated by electricity would see increases closer to €8.30 per month, the finance ministry told French media.
You can also use this simulator from BFMTV to estimate how much your bill will increase by, as costs differ based on surface area, the number of people living there, as well as consumption levels.
For example, there is a significant difference in electricity consumption based on whether or not you only use electricity to heat your home, or if it is also used for hot water and cooking.
The French government involvement in price-setting doesn't just happen during periods of energy crisis, normally regulated tariff prices are updated twice a year; on February 1st and August 1st.
Typically, this value is calculated by the CRE (commission de régulation de l'énergie) and it is based on several different factors, which are explained on this government website. These tariffs proposed by the CRE are then subject to approval by the ministers in charge of energy and the economy.
These affect the state-owned Engie (formerly Gaz de France), the mostly state-owned EDF and some local distribution companies. Around 70 percent of people in France get their electricity from EDF but other suppliers do exist in the market.
These alternative suppliers, like Direct-Énergie, Total Spring or Antargaz, are free to charge more - but don't usually charge much above the EDF rates for obvious commercial reasons.
Why the price rise?
During the period immediately following pandemic restrictions and the start of the war in Ukraine the French government helped households cope with soaring energy prices, via the bouclier tariff (tariff shield) which froze electricity and has prices.
Now, however, government is seeking to national decrease debt and plans to gradually lift price-shield measures.
The French government had lowered the domestic tax on final electricity consumption (the TICFE) down to just €1 per MWh during the crisis period. This value was raised €21 per MWh on February 1st, and it will be restored to its pre-crisis level (of €32 per MWh) in 2025.
"We've protected a lot of people, and we're getting back to normal. We also need to protect our public finances, because if there's another pandemic or another crisis tomorrow, want to be able to protect the French, employees and businesses", the minister said.
Increased electricity rates will allow the French government to earn approximately €6 billion, Le Maire explained to the French press in January.
"A very large part of that will be used to finance renewable energies, as well as the energy voucher", the finance minister said.
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The latest increase will be 8.6 percent for those on basic rate plans (which most households are on), and up to 9.8 percent for those who use 'peak-off-peak' (tarifs heures pleines-heures creuses) plans.
Because France's electricity giant EDF is partially state-owned, the government approves tariff rises.
Finance minister Bruno Le Maire said: "For 97 percent of French households, the increase will be below 10 percent".
He added that "this is the last increase for 2024", saying that the next price rise would not be until February 2025.
This marks the fourth increase in electricity bills in the last two years, with prices having risen approximately 44 percent since February 2022, according to calculations by Le Parisien.
Normally electricity tariffs are adjusted in February and August, but the government has frozen several increases since the Covid pandemic and the Russian invasion of Ukraine, in order to help control increases in the cost of living.
How much does that mean for average households?
On average, households will pay around €100 more per year.
A four-room home heated by electricity only could see bills increase by €18 a month, while a one-bedroom apartment heated by electricity would see increases closer to €8.30 per month, the finance ministry told French media.
You can also use this simulator from BFMTV to estimate how much your bill will increase by, as costs differ based on surface area, the number of people living there, as well as consumption levels.
For example, there is a significant difference in electricity consumption based on whether or not you only use electricity to heat your home, or if it is also used for hot water and cooking.
The French government involvement in price-setting doesn't just happen during periods of energy crisis, normally regulated tariff prices are updated twice a year; on February 1st and August 1st.
Typically, this value is calculated by the CRE (commission de régulation de l'énergie) and it is based on several different factors, which are explained on this government website. These tariffs proposed by the CRE are then subject to approval by the ministers in charge of energy and the economy.
These affect the state-owned Engie (formerly Gaz de France), the mostly state-owned EDF and some local distribution companies. Around 70 percent of people in France get their electricity from EDF but other suppliers do exist in the market.
These alternative suppliers, like Direct-Énergie, Total Spring or Antargaz, are free to charge more - but don't usually charge much above the EDF rates for obvious commercial reasons.
Why the price rise?
During the period immediately following pandemic restrictions and the start of the war in Ukraine the French government helped households cope with soaring energy prices, via the bouclier tariff (tariff shield) which froze electricity and has prices.
Now, however, government is seeking to national decrease debt and plans to gradually lift price-shield measures.
The French government had lowered the domestic tax on final electricity consumption (the TICFE) down to just €1 per MWh during the crisis period. This value was raised €21 per MWh on February 1st, and it will be restored to its pre-crisis level (of €32 per MWh) in 2025.
"We've protected a lot of people, and we're getting back to normal. We also need to protect our public finances, because if there's another pandemic or another crisis tomorrow, want to be able to protect the French, employees and businesses", the minister said.
Increased electricity rates will allow the French government to earn approximately €6 billion, Le Maire explained to the French press in January.
"A very large part of that will be used to finance renewable energies, as well as the energy voucher", the finance minister said.
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