The price of electricity will increase on February 1 from 8,6% to 9,8%, an increase of 38% in one year

Given that 65% of kWh consumed in the residential sector in France are consumed as part of the HPHC option, 30% are consumed at the base rate and 5% as part of the EJP/Tempo offers (which increase by 10,1 %), the average increase on February 1 will be +9,5% including tax.

A new increase after those of February and August 2023

This new increase comes after 2 successive increases of 15% in February 2023 and 10% in August 2023. In 12 months, the price of electricity will therefore have jumped by 38% on average.

A family who paid €2.500/year for electricity before the increase on February 1, 2023 will now pay €3.500/year! This represents a level of increase never seen in France and goes against the trend in other European countries where the price of electricity is tending to fall.

To return to the pre-shield TICFE level (€32/MWh), the Government will have to further increase the tax by €11/MWh. We must therefore expect a future increase of at least between 4 and 5% in the price including VAT, if the market price of electricity remains stable and therefore the price of the kWh excluding VAT does not change.

The price of electricity in France returns to the European average

We used to say that electricity in France was among the cheapest in Europe, in particular because of the significant nuclear production. It is no longer the case. The price of electricity in France is now within the European average, while there are no longer any problems with nuclear production or tensions on gas like last winter.

It is higher than that of Spain and Italy, and it remains lower than that found in Germany.

Impact of the increase on the French bill

What will be the impact of this increase on the French bill?

Hello Watt studied the case of 3 households:

(1) Simulation for an annual consumption of 2.400 kWh, 6 kVA meter, Base option

(2) Simulation for an annual consumption of 8.500 kWh, 9 kVA meter, Base option

(3) Simulation for an annual consumption of 14.000 kWh, 9 kVA meter, peak hours/off-peak hours option

(4) Annual invoice based on the TRVE of 31/01/2024

(5) Annual invoice based on the TRVE of 01/02/2024

Impact of three successive increases: up to +39% in one year

Hello Watt also studied the impact of the 3 successive increases since February 2023:

Hello Watt warns of the significant risk that this increase represents for the French: many households will have very unpleasant surprises on their bills!

Solutions exist to reduce bills, in particular energy renovation which would then be even more profitable with this increase in electricity prices.

Solutions to save energy

Below are projections for an annual bill of €3.540, subscription included:

(1) Estimate for a market offer with a discount of 16% compared to the price excluding tax of the regulated sales tariff, like what currently exists on the Hello Watt comparator.

(2) Estimate for a 10% reduction in consumption (Source: Hello Watt study on 170.000 application users).

(3) Estimate for a 30% reduction in heating consumption.

(4) Estimate for a house in the South of France, with a solar installation of 6 kWp, i.e. 16 panels, 30 m². For a 100 m² all-electric house occupied by a family of 4 people. Electricity price at EDF's TRV (February 2024 rates including the 9,5% increase).

(5) Estimate for a 60% reduction in heating consumption.

For Sylvain Le Falher, co-founder of Hello Watt: “This is an unprecedented increase in the price of electricity in France, going against the trend in other European countries: France is no longer a country where electricity is inexpensive for individuals. Solutions to sustainably control your consumption and your energy bill exist and are becoming particularly profitable for individuals with this new price increase! »

Illustrative image of the article via Depositphotos.com.