Electricity Prices will Increase by 10% on August 1st with the Reduction of the Tariff Shield

Electricity Prices will increase by 10 percent in Audust

PRICE INCREASE: This electricity increase concerns customers “connected to a meter with a power of up to 36 kilovolt-amperes”, i.e. households, craftsmen, small businesses and craftsmen

The government announced on Tuesday a 10% increase in regulated electricity prices on the 1st August, due to a gradual reduction in the price shield put in place for two winters. This increase concerns customers “connected to a meter with a power of up to 36 kilovolt-amperes”, ie households, craftsmen, small businesses and craftsmen; large companies do not benefit from the tariff shield.

The last increase dates from February and amounted to 15%, after 4% in February 2022. “Before the increase, the bill was around 1,640 euros per year. After the increase, it will be at 1,800 euros”, for an average consumer with electric heating who consumes 7 MWh per year, an increase of 160 euros on average, calculates the government.

End of the tariff shield

“From August 1st, the tariff shield will continue to cover the protection of French people at more than a third of their bill, 37%, and continues to be the level currently insured which is 43%”, calculates the government which insists electricity prices in France remain among the lowest in Europe.

According to the Energy Regulatory Commission, some 21.6 million residential customers (out of 34 million) benefited from the regulated electricity tariff as of December 31, 2022. In addition, 1.5 million small non-residential customers were at the regulated rate on the same date. The electricity tariff is revised twice a year, in August and February. The government has announced that it will gradually put an end, by the end of 2024, to the tariff shield on electricity prices introduced to combat inflation.

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