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Electricity: The Regulated Prices up 1.7% on 1st August

The government announced this Friday 28th July, the 1.7% increase in regulated electricity tariffs, as from the 1st August.

The government announced on Friday 28th July that regulated electricity tariffs applied by EDF to 27 million households will increase by 1.7% on the 1st August, as part of the annual review of these tariffs.

Rates “are set in accordance with the proposal of the Energy Regulatory Commission”(CRE), according to a decision of the Ministry of ecology and solidarity Transition published Friday in the Official Journal.

CRE had proposed in June a 1.7% so particular to “finish” in this annual trend rate of “catch-up amounts related to inadequate tariffs for the year 2012 ‘ .



In April 2014, the Council of State invalidated the cap to 2% of the rate increase for the period from August 2012 to August 2013, decided by the government of Jean-Marc Ayrault.

The government measure was challenged before the Supreme Administrative Court by the competitors of EDF, whereas the rise was not enough to cover production costs of electricity as required by law.

Part of this catch has already been done, but there is a balance of 190 million euros to clear and recover on the bill of customers who subscribed to regulated prices over the period.

Electricity regulated tariffs are revised every August 1st

Regulated tariffs for electricity sale are reviewed annually on the 1st August. They are calculated by adding up the cost of energy (prices on the wholesale market price and the historical nuclear), the routing cost of electricity (transmission and distribution) and marketing costs.

CRE proposes an evolution of these rates. The government has three months to oppose it. Last year, prices fell 0.5%, due to low electricity prices on the wholesale market.

Regulated gas tariffs will disappear, the Council of State that tried “contrary to the law of the European Union” .

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