Electricity prices: “No catching up in 2023” reassures Bruno Le Maire

Electricity prices: "No catching up in 2023" reassures Bruno Le Maire

The Energy Regulatory Commission again mentioned catching up with 8% from 2023.

“In 2023, there will be no catching up” on electricity bills. Bruno Le Maire wanted to calm down about 8% after the introduction of the customs shield introduced last October after the release of information evoking the catch-up. This system has reduced soaring energy costs, especially electricity.

It decided last October to allow a limited increase in regulated electricity rates to 4% on 1 February, while the Energy Regulatory Commission (CRE) proposed an increase of 44.5%, taking into account market prices. Abroad, some countries are facing soaring electricity bills, while in Spain household bills have risen by 41%.

No catching up, but the cost to the state

Bruno Le Maire therefore confirms that the January promise will be kept. “In 2023, there will be no catching up leading to a new increase. The cost of this measure will be borne by the state and EDF, “Parisian Economy Minister Bruno Le Maire promised last January.

To finance the measures, the state paid aid to small energy suppliers to compensate for the price increase limited to 4%, while leading suppliers such as EDF were asked to postpone their cash flow by one year. ”In terms of rates, it is the state, and therefore a taxpayer who compensates energy suppliers to offset the difference between market prices and prices set by the state.

Fear of “stratospheric growth” of electricity prices

The planned increase of 8%, which led to the jump of the consumer association CLCV, which in a press release feared a “stratospheric increase in electricity prices in early 2023 and regrets that the CRE” did not make any contact with consumer associations, as required for regulated price decisions. “

The association states that it reserves the right to challenge this possible tariff catch-up with an administrative judge and condemns the catch-up in order to save companies in a sector that has been open to competition since 2007.

An increase in 2023?

Adverse consumer mechanism: in order to make room for 33 different electricity suppliers, public authorities have in fact further increased regulated tariffs. “Tariffs must be high enough to allow many of EDF’s competitors to gain a competitive foothold,” explained France Info Raphaël Boroumand, an energy economist.

However, if electricity bills are not caught up, rates will be revised on February 1, 2023. While the government set tariffs to drop tariffs at the end of winter and force economic recovery last October, the war in Ukraine weighs on energy prices. And this could lead to further increases in energy prices in early 2023.

VIDEO – Rising gas prices: criticized “tariff shield” in France.

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