2024 Electricity and Gas Price Increase: Impact on Consumer Bills and State Budget

2024-01-13 10:59:27

It was said that it would intervene mechanically with the approved removal of the financial shield. In fact, electricity bills will increase significantly this year. The gradual increase will begin on February 1. Here are the reasons, the amount and the rate of the increase for this year 2024.

To better understand the reasons for this expected increase, we will have to go back to 2022 which saw the elimination of the tax on electricity following the implementation of the price shield. A measure taken to help consumers in the face of soaring energy prices, induced in particular by the outbreak of war in Ukraine. At that time, the government took this measure to mitigate the price rise on household bills.

Clearly stated, the latter were not paying real market prices for their consumption, given that the government had limited the increase in prices through the tariff shield deployed. However, this ended up having a significant impact on the state budget. The “damage” amounts to tens of billions over the two years 2022 and 2023, explains François Lenglet to our colleagues at RTL. This led Bercy to reinstate the electricity tax to gradually reduce this financial burden. “ The State still subsidizes the price of electricity today by 35% », notes the source, which makes it possible to reduce the bill paid by the consumer.

Annual electricity bill up by almost 130 euros

With the reinstatement of the electricity tax and the increase which comes into force on February 1, the subsidy will be reduced, particularly for households and small businesses which took full advantage of it until then. Indeed, the increase in taxes on kilowatt hours, which will be reviewed several times, and which should “ approach 10% » will increase the annual electricity bill for the consumer by around 130 euros. This will allow the State to begin rebalancing the balance of the electricity market, the bill for which has increased by almost 60% since 2020.

And this is only a first adjustment, with the costly nuclear plan projected by the government for 2037 which calls for heavy investments. “ In the field of nuclear reactors, the six planned EPR2s represent more than 50 billion to be produced (…) it is therefore entirely possible that in total, the price of electricity will double over the current decade », suggests the source.

Gas prices also expected to increase

Gas prices are also expected to follow with the increase in taxes retained for this year. The annual bill should “ increase from 100 to 150 euros “. Indeed, even if, for the moment, prices are following a downward trend, these resources remain necessary to guarantee the maintenance and renovation of the distribution network. That said, the number of consumers is decreasing with the switch to electricity and heat pumps.

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