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Fearing the rise in electricity prices, the CLCV association advocates a reduction in VAT

2021-09-25T13:40:07.243Z

The consumer association wants to lower VAT on electricity from January 2022. A surge in the markets which may have repercussions on consumers. The association CLCV (Consumption, Housing, Living Environment) is calling for a reduction in VAT on Friday to cope with the rise in electricity prices, which may lead to a sharp increase in tariffs next year. #Communiquedepresse Explosion of the # electricity price: the positions of the CLCV. To read our 3 opinions ⬇️⬇️⬇️ https://



A surge in the markets which may have repercussions on consumers.

The association CLCV (Consumption, Housing, Living Environment) is calling for a reduction in VAT on Friday to cope with the rise in electricity prices, which may lead to a sharp increase in tariffs next year.

#Communiquedepresse Explosion of the # electricity price: the positions of the CLCV.

To read our 3 opinions ⬇️⬇️⬇️ https://t.co/Hg5xTaFsfH #Energie # electricity

- CLCV (@clcvorg) September 24, 2021

"In the short term, we must seize the proposal of the European Union and lower the VAT", advocates the association for the defense of consumers and users in a press release.

The current rate is 5.5% on the subscription and 20% on the proportional part.

“On the sidelines of the yellow vests crisis in 2018, the CLCV had already made this proposal to the Prime Minister and the Minister of the Economy.

We strongly reiterate it for the month of January 2022 ”, underlines the association.

An outbreak to be feared in 2022

Electricity prices are skyrocketing on the wholesale market, driven by gas prices and CO2 emission quotas.

This could translate into a sharp increase for consumers next year, when the Energy Regulatory Commission will have to propose a new evolution of regulated tariffs.

"In the long term, the public must be consulted to consider a return to the regulated monopoly", continues the CLCV.

At the start of the year, she had already advocated a return to monopoly because of the "failure" of opening up the electricity market to competition, which does not translate into price cuts.

Read also Electricity and gas prices: do regulated tariffs protect consumers?

Finally, taking the opposite view of the UFC-Que Choisir in particular, it supports the government in its refusal not to increase the ceiling for the volume of EDF nuclear electricity sold cheaply to alternative operators.

An increase in this ceiling would be offset in the medium term "by an undoubtedly irreversible and unjustified increase in the price of nuclear power" and "it would then be a fooled market for the consumer", according to the CLCV.

"In the long term, granting more nuclear power to competition is to further strengthen this virtual and artificial economy which does not create tangible value (but which harasses consumers door to door or on the phone)", insists -she.

Legal solutions to limit the increase?

The government refused Wednesday to raise the ceiling of the mechanism called Arenh (for "regulated access to historic nuclear electricity").

"A unilateral decision would present legal risks which are too important in the short term and which would render this decision ineffective", argued in the Senate the Secretary of State for Biodiversity Bérangère Abba.

"We are studying additional solutions to limit, while remaining within the legal framework, this increase in electricity prices," she said.

Source: leparis

All business articles on 2021-09-25

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