French News Archive

Money & Finance

Electricity Tariffs: An Increase of 3.4%

Wednesday 01 September 2010

After a 9.7% increase in gas prices in April, electricity prices increased by an average of 3.4% from 15th August, the largest rise since 2003.

Although the average increase is 3.4%, there are large differences for some households depending on the type of tariff used.

According to EDF, 90% of their 27.5 million residential customers will see their bill change between -2% and +5.7%. However, they do not state just how many will actually see their bill go down!

The consumers association Que Choisir has reacted angrily to the changes: 'As with last year, this rise, against all environmental logic, penalises the most virtuous consumers - small consumers and those with special low consumption rates on peak days'.

EDF justified the increases by stating: 'This increase responds to the priority of ensuring the long term competitiveness and quality of the electricity supply, by allowing EDF to make the necessary investment in its production facilities and networks''.

They claim that electricity prices in France remain 'lower than 25%-35% of the European average'.

That view seems to be confirmed by a study published by the French General Commission on Sustainable Development (CGDD) this month, which compared the prices of energy in the European Union in 2009.

'In France, electricity prices remain 29% below the EU average, whether measured pre-tax or VAT inclusive', the CGDD stated in a press release.

For residential customers, the price per kilowatt hour in 2009 (including VAT) was €11.43 kWh in France, against an average of €16.36 kWh in Europe.

Simultaneously with the announcement of the price increase, the French government stated it wants to strengthen access to a reduced electricity tariff for those on a low income – the Tarif de première nécessité – for the 10% of households who are eligible.

This announcement was greeted without a great deal enthusiasm by Que Choisir who stated: 'This is false ‘good news'. Today, only 31 % of those entitled to benefit from the reduced tariff get it, because it is little known, and the system to obtain and keep it is a real obstacle course.


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