2023-09-14 15:20:00
The Energy Regulatory Commission (CRE) could propose a sharp increase in regulated prices in February 2024. The decision, however, will be up to the government.
By IM with AFP The CRE could propose an increase of 10 to 20% in regulated electricity prices for February 1, 2024. © Florian Escoffier / MAXPPP / PHOTOPQR/NICE MATIN/MAXPPP Published on 09/14/2023 at 3:20 p.m.
The sector watchdog, the Energy Regulatory Commission (CRE), indicated on Thursday September 14 through its president Emmanuelle Wargon that it was considering an increase of between 10% and 20% in regulated tariffs (TRV) for electricity. in February 2024. The actual increase will not, however, be confirmed before the end of the year, because the decision depends on the government. But the commission’s mission is to calculate a theoretical rate, based on market prices. The regulated rate, which benefits the majority of households, changes twice a year, on February 1st and August 1st.
“In this entire period of crisis, it is necessary to separate the calculation of theoretical TRV, which is the application of the calculation formula, from the decision which is the responsibility of the government, namely the part which is acceptable and the part which must be financed by the state budget,” recalled Emmanuelle Wargon.
A probably smaller increase
Clearly, if the CRE calculated a tariff increase of between 10% and 20%, the final decision could result in a lower increase, with the shortfall for suppliers being compensated by the State. This is what happened this year: on February 1, 2023, the CRE, based on the costs of supplying electricity on wholesale markets, had calculated an increase in the average level of regulated tariffs of electricity by 99.22%, but the government had decided to limit this increase to 15%.
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“On TRV, it’s still a little early to do the equation, since we do the TRV calculations on the basis of prices over the previous two years, so we will have to wait to see the prices at the end of 2023,” warned Ms. Wargon. “Nevertheless, we will be in a theoretical TRV calculation which will be a much lower increase than what we were able to do last year,” she added. Compared to the calculation at +99.22%, “we will not be in this zone at all, we will be in a zone of 10, 20% roughly,” declared Ms. Wargon.
A few hours after this press briefing, the CRE specified that “the theoretical calculation that the CRE would propose to the government could result in an evolution whose order of magnitude would be 10% maximum at the beginning of 2024, in current market conditions, before possible application of a tariff shield”.
After the 15% increase in February, the government decided on August 1 to increase regulated electricity prices by 10%, thus marking the gradual exit from the tariff shield, with the government wishing to reduce the burden on finances. public.
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