Electricity Prices Increase Again on August 1st in France

The cost of electricity in France is set to increase once again starting from August 1st, 2023. This comes as a surprise to many, as just a few days ago, the government announced a 10% hike in regulated electricity prices. The decision to implement this increase now is aimed at mitigating the impact of future price hikes.

Concerns for Low-Income Households

The increase in electricity prices is a cause for concern, especially for low-income households who are already grappling with high inflation in basic necessities such as food and clothing. In Saint-Denis, a neighborhood in northern Paris where more than a third of the residents live below the poverty line, the news of the price hike has not gone unnoticed. Eliane, a 48-year-old unemployed single mother, is already struggling to pay her electricity bill, with a debt of 400 euros. While she has received assistance from the local government, the electricity company is currently refusing to allow her to pay off her debt in installments.

The situation is not unique to Eliane, as many families and individuals are counting every penny due to stagnant wages that fail to keep up with rising prices. Nasser, a sixty-year-old resident, highlights that electricity prices have already increased by 15% earlier this year, and another 10% increase is becoming burdensome.

Impact on Businesses and Artisans

The government justifies this new hike as a step towards gradually phasing out the tariff shield to alleviate the burden on public finances. The average annual electricity bill for a consumer relying on electric heating will now increase from 1640 to 1800 euros, with the government still covering more than one-third of the bill. This ensures that French households continue to enjoy some of the lowest electricity prices in Europe.

However, the impact of these price hikes is not limited to households. Small businesses and artisans with power meters up to 36 kilovolt amperes will also be affected. Boulangeries (bakeries) are not directly targeted, but their electricity bills continue to rise, posing challenges for business owners like Sébastien Copin, who has seen his electricity bills multiply by nine since opening his bakery in September 2022.

Words of the day

tariff shield : bouclier tarifaire

burden : fardeau