2023-09-14 18:15:11
The Minister of Economy and Finance, Bruno Le Maire, ruled out on Thursday September 14 an increase in (TRV) in February 2024, as could be proposed by the Energy Regulatory Commission (CRE).
“An increase in electricity prices of 10 to 20% (…) at the start of 2024 is excluded”declared Bruno Le Maire to journalists in reaction to this proposal put forward Thursday by the head of the sector gendarme, Emmanuelle Wargon.
The decision depends on the government
The actual increase will not be confirmed before the end of the year, as the decision depends on the government. But the CRE’s mission is to calculate a theoretical tariff, based on market prices. The regulated rate, which benefits the majority of households, is reviewed twice a year, on February 1st and August 1st.
During a press briefing earlier in the day, Emmanuelle Wargon herself noted that “during 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”.
Wholesale markets
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%.
Compared to these +99.22%, “we will not be in that zone at all, we will be in a zone of 10 to 20% roughly”declared Emmanuelle Wargon.
An increase in February
After the 15% increase in February, the government decided on August 1 to increase regulated electricity prices by a further 10%, thus marking the gradual exit from the tariff shield. The government thus wishes to reduce the burden of these expenditures on public finances.
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