Energy tariffs

Electricity: prices increase in February!

Publié le 25 janvier 2024 - Directorate for Legal and Administrative Information (Prime Minister)

At 1er In February 2024, electricity tariffs are increasing in France as part of the gradual end of the tariff shield that was put in place by the Government in 2021. How will this affect your bills? How are electricity tariffs set? Service-Public.fr informs you.

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Image 1Crédits: krungchingpixs - stock.adobe.com

The price of electricity is fixed by the public authorities twice a year, in January and August. The Minister of the Economy has just announced a gradual increase in electricity tariffs for households and professionals from 1er February 2024, with the objective of removing the tariff shield in February 2025 (it was originally scheduled to end in 2023).

The increase announced is 8.6% for the basic tariff and 9.8% for off-peak full-time rate.

FYI  

electricity tariffs are subject to the european wholesale market. Faced with a significant increase in prices from 2021 onwards, with an impact on households' final bills, the tariff shield was put in place to limit this increase.

In 2023, European wholesale prices fell, partly due to the resumption of French nuclear power generation. In this context, the Government has decided to consider the removal of the tariff shield.

Why the increase?

Compared to the base rate set in August 2023, the increase is expected to begin on or after 1er february 2024 electricity rates are estimated at:

  • 8,6 % for the basic tariff;
  • 9,8 % for the off-peak full-hour rate.

For companies, the evolution will be between 5.2% and 8% depending on the contract.

This increase is reflected in a reassessment of the domestic tax on final electricity consumption (TICFE). This tax is increased to €21 per megawatt hour (MWh).

In 2022 and 2023, the CTFE was lowered to €1 per MWh to contain tariffs and limit the increase to 4% in February 2022, 15% in February 2023 and 10% in August 2023.

As a reminder, before the energy crisis, the CTFE amounted to €32.44/MWh.

This tax measure decided by the Government is indicated in the 2024 Finance Act, which specifies that the excise tariff on electricity may be increased up to a maximum. Thus, the increase in EDF's regulated tariff (Blue Tariff) inclusive of VAT must remain less than 10 %.

Please note

values expressed on your readings are usually given in kilowatt hours (kWh). At 1er February, the TICFE will increase to €0.021/kWh.

The TICFE can still appear on your invoice under the old name CSPE (contribution to the public electricity service).

How is the price of electricity calculated?

The regulated electricity tariff includes the subscription price and the consumer price. The first is fixed and the second evolves according to the recommendations of the Energy Regulatory Commission (ERC).

There are several factors involved in setting the price per kilowatt hour:

  • several taxes: TICFE (internal tax on final electricity consumption, formerly known as CSPE), CTA (routing tariff contribution) and VAT (value added tax);
  • production, storage, supply and marketing costs;
  • routing costs;
  • the price of gas (part of the electricity produced or imported comes from gas power plants);
  • the cost of CO2 allowances.

Reminder

CRE proposes twice a year a review of EDF's regulated electricity tariff, known as the “Blue Tariff”. This rate applies to the majority of households.

See the tariff proposal of the CRE in January 2024.

FYI  

the National Energy Ombudsman proposes a simulator to compare basic and off-peak subscriptions.

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