Electricity Bill Increase: Understanding the 10% Hike and Its Impact on Consumers and Businesses

2024-01-10 21:13:56

The government had promised that the increase would not exceed 10%. The price of the electricity bill will therefore increase on February 1st by… 10%! This is what Emmanuelle Wargon, president of the Energy Regulatory Commission (CRE) indicates. at the Parisian, before the publication, on Thursday, of the calculations of the increase in the regulated electricity sales tariff (TRVE).

This increase is part of the context of the gradual lifting of the 2022 tariff shield – limiting the inflation of bills for businesses and households alike – and is also explained by the reintroduction of the domestic final consumption tax on electricity. (TICFE), frozen as part of this same shield.

As the president of the CRE explains to Le Parisien, it is therefore not the prices on the wholesale markets, which have been more lenient for months, which will cause prices to jump. “Without taxes, and even including current tax levels, the increase for individuals would be zero. On the other hand, by reducing this TICFE to 70% of its normal level, to €22.54 per MWh (as provided for in the 2024 finance law), we arrive at an increase of 10% for individuals, and of 6.20% for professionals”, analyzes the one which considers that the State takes a “political decision, of public finances”.

As a reminder, the electricity bill had already increased by 10% in August, due to the gradual end of the tariff shield. All cumulative increases since February 2023, this bill is set to increase by 39% in one year.

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