+15% increase in current regulated gas and electricity prices: the French are well off in Europe

After gas in January, it is the price of electricity which will increase by 15% including tax on 1 February. Without the price shield put in place by the government, electricity prices would have increased by 99% including tax according to the CRE, which amounts to saying that the State, with the price shield, will pay, in 2023, 43% of our electricity bills.

Despite these price increases, the prices of gas and electricity paid by individuals in France remain among the lowest in Europe, 2 to 3 times cheaper than in other major European countries.

Only Spain and Portugal have tariffs similar to, or even lower than, those applied in France: in these countries, the regulated tariffs in force (TRV) are highly correlated to market prices, which are currently low due to high wind power generation and the drop in demand, partly linked to milder temperatures and energy restraint.

Find here the updated Hello Watt barometer of energy prices in Europe for individuals:

Since wholesale prices are similar in France to those of its European neighbours, these lower electricity and gas bills are only possible thanks to the price shield put in place by the government, which should amount to €45 billion, generating a considerable cost for public finances in 2023 alone.

In 2023, 43% of private electricity and gas bills will be paid by the State, despite the 15% increase in the price of electricity and gas.

If it is relevant to protect the most modest in this period, it is regrettable that the tariff shield is not targeted on them rather than on all customers. Indeed, subsidizing the price of energy does not encourage us to reduce our consumption.

Since the budget for Ma Prime Rénov is €2,5 billion for 2023, to finance long-term energy savings and not a temporary drop in bills, one can wonder about the proper allocation of State resources to meet the rise in energy prices, the price of energy for individuals being set to continue to rise in the years to come, a significant part of the tariff shield being absorbed by tax cuts, which are intended to rise .