UFC-Que Choisir calls for a freeze on electricity taxation to avoid a new surge in bills

The association therefore asks the new Prime Minister to show his willingness to work to preserve the purchasing power of consumers by freezing the increase in the regulated price for the sale of electricity, or at least by limiting it so that it does not exceed 2,5%, i.e. the inflation expected in 2024.

An increase in the price of electricity which would hit all consumers hard

Just a year ago, the average annual bill for a household at the regulated electricity sales rate (TRVE) heated with electricity was 1.604 euros. With a new increase of 10% on February 1, as suggested by the Energy Regulatory Commission (1) (CRE), this bill would reach 2.235 euros (+ 39,3%), i.e. a purchasing power cut by more than of 630 euros, and can well exceed 1.000 euros a lot for the inhabitants of particularly energy-intensive thermal strainers. While many households today give up heating due to the price of electricity or have to choose between heating and feeding themselves, the prospect of such an increase (much higher than the estimate made by the Banque de France of inflation of 2,5% in 2024 (2)) is particularly alarming.

An increase which would mark the return of massive taxation

This 10% increase in the TRVE would not be linked to the increase in the price of electricity but to that of a tax weighing on electricity consumption. Therefore, it is not only households subscribing to the TRVE who would see their bill increase, but all households, regardless of their contracts. This increase in taxation would be unjustified, on at least three counts.

First of all, it would be particularly unwelcome in a general context of inflation, and would highlight that the purchasing power of the French is not at the heart of the Government's budgetary policy. Then, it would be all the less explainable since the costing of the TRVE by the CRE already allows the Government to make significant savings. Indeed, the calculation of the TRVE excluding tax for 2024 by the CRE will induce the end of public compensation to electricity suppliers within the framework of the tariff shield, which, according to our calculations (3), will allow the State to save this year no less than 13,1 billion euros compared to last year. Finally, it would mark the return of extremely high taxation (various taxes and contributions, VAT at 20% which also applies to other taxes) on the consumption of electricity, a basic necessity. Finally, this increase would be all the more unwelcome as the Government's energy policy aims for massive electrification of uses.

A TRVE whose price still remains artificially high

A sharp increase in taxation would mark the Government's desire to no longer act to reduce electricity prices and would therefore reflect the fact that it considers that consumers today pay the fair price of electricity. This is however not the case. UFC-Que Choisir has regularly documented (4) the fact that the TRVE is not an offer reflecting production costs in France, but rather electricity prices on international markets, themselves largely linked to (high) gas prices. A shame when we know that the French electricity mix is ​​almost entirely carbon-free! As electricity prices paid by households are currently artificially high, a further increase would be more intolerable than ever.

In view of these findings, the UFC-Que Choisir, concerned with preserving consumers' purchasing power and fair electricity pricing, is asking the new Prime Minister to prevent an increase in the price of electricity. , driven by taxation, or at least to contain it as much as possible at the level of inflation forecast for 2024, namely 2,5%. By acting in this way, the Prime Minister would show that he intends to put purchasing power issues at the heart of his action for the French.

The association also reminds consumers that it makes available to them free of charge on its site www.quechoisir.org un comparator prices of energy supply offers.

(1) https://www.cre.fr/actualites/la-cre-prepare-l-evolution-des-tarifs-reglementes-de-vente-d-electricite-au-1er-fevrier-2024

(2)https://www.banquefrance.fr/fr/governorsinterventions/voeux2024#:~:text=1.1%20Moins%20d%27inflation%2C%20et%20plus%20de%20stabilisation&text=Il%20y%20a%20un%20an%2C%20beaucoup%20montraient%20un%20scepticisme%20plus,1%2C8%25%20en%202025.

(3) Referring to the economic, social and financial report of the finance bill for 2024 https://www.tresor.economie.gouv.fr/Articles/2023/10/04/publication-du-rapport-economique-social-et-financier-plf-pour-2024

(4) See for example: https://www.quechoisir.org/action-ufc-que-choisir-prix-de-l-electricite-explosion-des-factures-la-necessite-d-une-nouvelle-regulation-en-toute-transparence-n91434/

Illustrative image of the article via Depositphotos.com.