ELECTRICITY PRICE. The wholesale price is exploding and has just crossed the 1,000 euro per MWh mark. Despite the tariff shield, some could pay a high price for this increase this winter.
[Mis à jour le 30 mai 2022 à 15h15] Despite the price shield introduced by the government by capping the increase in the price of electricity at 4%, the price of electricity could increase significantly for some of you. In reality, it is the wholesale price that worries. It went from 103 euros per megawatt hour (MWh) in September 2021 to more than 1 000 euros today ! In question, the temporary shutdown of 32 French nuclear reactors and the insane rise in gas prices. If you get your supplies from an alternative electricity supplier, which purchases energy on the wholesale markets, you risk suffering this unprecedented price increase. Note that it is possible to return to the regulated rate by making the request to an incumbent supplier. This is the principle of reversibility.
Instead, we advise you to give preference to offers indexed to the regulated tariff, like EDF, it is set by the public authorities. The prices set by the State via the “EDF blue tariff” (regulated) are available here. Be careful all the same, once the end of the tariff shield is confirmed, potentially at the end of 2022, the prices charged by EDF could also increase. In an interview with Le Parisien published on August 27, Prime Minister Elisabeth Borne assured that the government was “not going to let energy prices explode” and that the rise in electricity would be “contained” in 2023. However, the executive will not be able to freeze energy prices indefinitely. A price increase remains a more than likely option, it now remains to be seen when and in what proportions.
In August 2022, the price per megawatt hour exceeded the 1,000 euro mark, compared to 103 euro in September 2021. In other words, the wholesale price of electricity was multiplied by 10 in just one year. This vertiginous increase can first be explained by the impressive increase in the price of gas (+ 1,500%), precisely used to produce electricity. The war in Ukraine has accentuated the gas shock phenomenon, Russian gas deliveries to Europe are slowing down, making energy more and more expensive. In addition, France is a country that has to import massive quantities of electricity due to the low production of its nuclear fleet. The shutdown of many nuclear reactors in France also has something to do with it.
Bruno Le Maire told Le Parisien an increase “by 20 terawatt hours (TWh) in the volume of nuclear electricity sold at a reduced price by EDF to its competitors, to increase it exceptionally from 100 to 120 TWh”. “This measure will automatically be passed on to the bills of individuals, whether households or businesses that buy their electricity at the regulated rate,” he asserts. “These volumes will be accessible to all consumers, individuals, communities and professionals, via their supplier, according to terms which will be specified very soon,” said the Ministry of Ecological Transition in a press release.
And concretely, what impact on your bill? “To be very concrete, for a 60 m² apartment, the average electricity bill is 1,000 euros. Without this agreement, it would have increased by 350 euros”, assesses the tenant of Bercy. “There, it will increase by 40 euros. For a house of 140 m2, with a bill of 2,000 euros, it would have increased by 650 euros, it will increase by 80. The decision we have taken is massive and effective”.
Should we therefore expect a catch-up, and therefore an extremely high bill in 2023? The Minister of the Economy wants to be reassuring. “Absolutely not. There will be no catch-up leading to a further increase in 2023. It is the State and EDF who will bear the cost of this measure”, he underlines.
As of August 1, electricity prices have already been revised upwards. This increase is due to the evolution of the TURPE (tariff for the use of the public electricity network), a tax which aims to ensure the maintenance of the network and its modernization. The average increase is 0.91% for MV/LV consumers. It is 1.39% per year for the TURPE 6 period (2021-2025). HTB consumers, they show an increase of 1.09% and 1.57% per year. Has your electricity consumption jumped in recent months? It must be said that with successive confinements, sometimes cooler temperatures and teleworking, there is enough to increase the final bill. In this context, are you looking for alternatives to pay less? Linternaute.com directs you to its dedicated file in order to compare electricity prices :
At EDF, you have the choice between regulated tariffs and the market offers. In the first scenario, as explained above, prices are set by the public authorities. EDF offers three distinct offers: a basic offer (where the price per kWh remains the same whatever the time and frequency), a peak-off-peak offer (where the price per kWh is more advantageous between 10 p.m. and 6 hours) and a so-called “Tempo” offer (where the price per kWh varies according to the time of day and the days of the week).
The latter corresponds to households with “an electricity subscription of at least 9 kVA [et qui disposent] of an alternative mode of heating, such as heating with wood for example”, explains one on the site of EDF. To find out about EDF’s market offers, visit the website. Would you like to know more about how electricity prices are calculated? We answer your questions. Are you looking to change supplier in the current context? Consult our dedicated file before you start:
If we rely on the latest data from Eurostat, the price of kWh in France will reach 0.1946 euros in 2021, much less than the average of the 27 countries of the European Union (0.2203 € / kWh). The tariff is much higher in countries such as Germany (€0.3193/kWh), Denmark (€0.2900/kWh) and Belgium (€0.2702/kWh).
* OlaWatt is a site of the Le Figaro-CCM Benchmark group, like Linternaute.com
It can sometimes be very difficult to tell the difference between the different offers on the market, as there are so many parameters to take into account (read above).
You can also go to the website of the national energy mediator: energie-info.fr. You will find in particular a comparator, here, in which you will have to specify your current tariff option, the power subscribed and your electricity consumption. UFC-Que Choisir also offers a comparator, here. You will then obtain an informative list of the most advantageous offers according to your profile. When you compare offers, always bear in mind the power you subscribe to, the type of pricing you want and your annual consumption (expressed in kWh).
Are you looking for another comparator? Olawatt by BeMove* also offers a comparison tool. You must enter your address, as well as your annual consumption and then your contact details to receive a summary of your request.
Are you looking to undertake energy renovation work in your home? Do you know My Prime Renov’? This system was put in place last year to replace the energy transition tax credit (CITE). Since January 1, this famous bonus concerns all households, regardless of their level of income. The amount of financial assistance, paid at the end of the work, depends on the household’s resources, the location of the accommodation and the nature of the work. To find out more, see our dedicated article:
In addition to taxes, the price of electricity that you will pay depends on multiple factors. Linternaute.com summarizes the criteria for you:
- The subscription you take out, whether it is EDF regulated tariffs or a market offer : you generally have the choice between two contracts, a basic rate and a peak-off-peak offer. In the first case, the price kilowatt-hour (kWh) of electricity remains the same. In the second scenario, it evolves according to consumption peaks. Clearly, it is cheaper at night, between 10 p.m. and 6 a.m.
- Your consumption: lighting, household appliances, computer, television, internet installations… All of this equipment consumes energy, even if it is on standby! You are looking to reduce your consumption. Read our article: Saving electricity: our advice
- The power of your electric meter : 3,6,9 or 12 kilovoltampère (KVa).
- The offer: the prices are obviously not the same from one supplier to another.
- The frequency of invoicing : it goes without saying that it can have an impact on the final invoicing. If you use your equipment more in winter, for example, this will inevitably affect your bill.
Would you like to know more about what makes up the price of electricity? Consult our dedicated file:
Total, Direct Energie… What alternatives to EDF?
Are you looking to leave EDF’s regulated tariffs? You are not the only one: every month, 100,000 customers say goodbye to them, according to the Energy Regulation Commission. By changing supplier, large consumers, who consume 8,000 kWh, can save “a hundred euros” per year, according to 60 million consumers in its October 2019 edition. Total Direct Energie, Eni, Happ-e de Engie, EDF… Whether you are leaning towards a market offer or regulated tariffs, you can find all the offers online.