EDF expects electricity price to rise by 5.9% as of June 1

After the beginning of the movement of "yellow vests" in late autumn, which demanded an increase in purchasing power, the government decided to freeze the rise in the price of electricity.

The World with AFP Posted today at 09:59

Time to Reading 1 min.

Frozen by the government following the movement of "yellow vests", the price of electricity will eventually be increased in the coming weeks. "We expect an increase in the regulated tariff of 5.9% in June", announced Tuesday, May 14 the financial director of Electricity France (EDF), Xavier Girre. This increase will affect around 25 million households.

It was the Energy Regulatory Commission (CRE) that proposed this increase, initially planned for the winter. But after the appearance of the "yellow vests" movement in November, which demanded, among other things, an increase in purchasing power, the government had used the statutory period of three months it had to decide on the CRE proposal.

Read also Why it's hard to freeze regulated electricity rates

In February, the Committee asked the Government to apply this increase " as soon as possible " and justified it by the rise in current prices on the wholesale market. "The government, as the law allows, will not apply these rate increases until the winter heating period is over, to protect French homes, especially the most modest", had reacted then the Ministry of ecological transition to justify the freezing of prices.

Towards a new way of calculating in 2020

But the independent public body had, however, said that this freeze on the regulated tariff should be caught up later. "Regarding catching up, we'll see, it's not clarified yet", said Tuesday the financial director Mr. Girre.

Regulated electricity and gas sales tariffs are set by the government and reviewed at least once a year. It is the CRE that proposes a tariff, starting from a formula integrating the costs of transport and distribution, but also the cost of the regulated access to the historic nuclear electricity (Arenh, with fixed price) and the prices of the market.

The electricity tariff also includes several taxes and contributions (36%) and a reasonable margin for the operator. However, due to a very strong demand from alternative operators to obtain electricity at the regulated tariff, market prices have increased in recent years. In recent weeks, the Minister of ecological and solidarity transition, François de Rugy, announced that a new calculation method was going to be put in place next year, considering the current system unsatisfactory.

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