The Rising Electricity Prices in France

Electricity prices in France are set to increase once again on August 1st, putting additional strain on households. The regulated electricity tariffs will rise by 10%, following a previous increase of 15% in February. This latest hike comes as inflation slows down in the country, prompting the government to gradually phase out the "tariff shield" on energy prices that was implemented to counter the sharp rise in prices linked to the war in Ukraine.

Concerns for Vulnerable Households

The announcement of this new increase in electricity bills is causing concern among the most vulnerable households, who are already grappling with high inflation in food prices. In Saint-Denis, a market in the north of Paris where over a third of residents live below the poverty line, the news of the price hike has not gone unnoticed. One resident, Éliane, a 48-year-old unemployed single mother, is already struggling to pay her bill and has accumulated 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. Many others at the market are also feeling the pinch, as salaries are not increasing as quickly as prices. Nasser, a man in his sixties, remarked that electricity prices had already increased by 15% earlier this year and the additional 10% rise was becoming costly.

Phasing out the Tariff Shield

This latest increase marks the first step towards gradually phasing out the tariff shield, a move aimed at easing the burden on public finances. According to government calculations, the annual electricity bill for an average consumer using electric heating will rise from 1640 to 1800 euros. However, the government emphasizes that it will continue to cover over a third of households' electricity bills (37% compared to the current 43%), ensuring that French consumers still benefit from some of the lowest electricity prices in Europe.

Coping with Rising Costs

In response to the rising costs, some consumers are finding ways to reduce their electricity consumption. Massiri, for example, prepares multiple meals at once to minimize energy usage. However, the increase in prices is taking its toll on many households, leading to a rise in power cuts or reductions for unpaid bills. Small businesses and artisans connected to a meter with a power capacity of up to 36 kilovoltamperes will also be affected by the price hike. Bakers, for instance, have seen their electricity bills continue to rise. Sébastien Copin, who opened his bakery in Paris in September 2022, has seen his electricity costs multiply by nine since then.

The Impact and Importance of Managing Electricity Bills

While electricity prices have recently decreased on the market, the regulated tariff in France is increasing by 10% on August 1st. This is due to the fact that the theoretical tariff, when combined with all supplier costs for 2023, remains 74.5% higher than the current frozen tariffs that were implemented on February 1st, 2023, with the tariff shield. The government has decided to pass on 10% of this difference to consumers starting from August 1st, reflecting a political choice to make consumers pay more and taxpayers a little less.

Words of the day

tariff : tarif

government : gouvernement