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The French are increasingly adopting renewable energies in the face of rising electricity prices

2023-03-20T11:08:57.705Z


The increase in regulated electricity prices, a direct consequence of the war in Ukraine, affects more than 20 million French households and 1.5 million small businesses. To support them, the government has put in place a tariff shield which limits the increase to 15%. Effective...


Changes to note for the 1st half of 2023!

The tariff shield, already put in place in September 2021 by the government of former Prime Minister Jean Castex, was extended by Prime Minister Elisabeth Borne.

The purpose of this mechanism is to freeze electricity tariffs in order to help households cope with rising electricity tariffs.

Despite opposing recommendations from the Commission de Régulation de l'Électricité (CRE), the government has extended the tariff shield mechanism via the 2023 finance law until June 30, 2023. Electricity tariffs have increased by 15 % including tax instead of the 99.22% including tax recommended by CRE.

Graph representing the evolution of the price of electricity with and without price shield.

tucoenergy

This proposal, refused by the State, highlights the government's desire to limit French bill increases.

The CRE's opposition is explained by:

  • The increase in the cost of energy supply and capacity guarantees

  • The update of the routing costs which had not changed on August 1, 2022

  • The evolution of marketing costs

  • Catch-ups for the 2022 financial year, in particular the coverage of EDF's loss of revenue following the freezing of TRVE by the Government

  • The revaluation of normal remuneration

Despite the maintenance of the tariff shield, the government took into account the scales of the CRE to fix the projected revenue losses to electricity suppliers by the State budget.

A loss of 23,937 million euros has been calculated under the tariff shield over the period from February 1, 2023 to January 31, 2024. This compensation is intended to reduce consumer bills without delay.

What would be the situation without a tariff shield?

The war in Ukraine has upset all the energy operating codes of the countries around and dependent on Russia.

The first affected by this event are of course the European countries, which are also affected by the increases in electricity prices.

Although all face the same constraints, the impact varies between countries leading to differences in inflation rates.

For information, Germany charges €850 per MWh and England €760.19 per MWh.

Despite the 15% increase in the tariff shield, France is not doing so badly with a price of €206.2 per MWh.

France is the second country – after Spain – to offer the lowest electricity prices.

The opinion of the French regarding the increase in the tariff shield

The government developed the sobriety plan in October 2022 with the objective of reducing its electricity consumption by 10%.

The French responded by playing the game and respecting the instructions.

Moreover, these efforts resulted in a 9% drop in the last quarter of 2022 compared to previous years at the same period.

Torn between the good news related to the maintenance of the tariff shield and the reality of the increase in their electricity bills, the French are ready to adopt certain changes in their lifestyles in order to reduce their electricity consumption.

According to the 12th edition of the Qualit'ENR* barometer, we note that:

  • 96% of people asked about renewable energy solutions for heating, electricity or hot water, of which 36% are considering it

  • 98% support the development of RE sectors

  • 73% think that renewable energies allow you to save money and gain purchasing power

  • 37% have decided to carry out energy renovation work in 2023

  • 45% now say they have at least one ENR equipment with it in the top 3;

    the thermodynamic water heater, the wood stove and the heat pump.

*Out of a panel of 2,806 people

Even if this wish centered around renewable energies stems mainly from a desire to reduce their electricity bill, we must salute the willingness of the French to adopt changes in their daily lives.

Many French people were also reassured when the government kept its promise by extending the tariff shield.

With a reality of global warming which announces increasingly cold temperatures in winter and increasingly hot in summer, the French fear the state of their future energy bills.

The role of renewables in this system

The development of renewable energies can be posed as a first response to the concerns of the French.

With a glimmer of hope thanks to the promulgation of the law on the acceleration of the production of renewable energies on March 11, 2023.

In recent years, the energy renovation sector has been booming, in particular thanks to the financial aid system supported by the State, which has enabled many French people to install energy devices such as solar panels, heat pumps, etc. recent measures, favorable to the French, aim to further encourage the installation of energy efficiency solutions:

  • The self-consumption premium is paid in one go

  • The amounts of the self-consumption premium and the purchase obligation tariffs are revised upwards

  • The heating boost to eradicate oil-fired boilers

In a study conducted by Nexity (in partnership with Ipsos), an assessment of the place of energy renovation in France is drawn up.

:

  • 82% of French people have heard of energy renovation, including 35% precisely

  • 1 out of 2 French people feel personally concerned by energy renovation

  • 33% do not plan to use energy renovation, partly because they do not know who to get support from.

Like the French, the TUCOENERGIE company has long understood the importance of renewable energies in our energy model.

With more than 500 installations per month, this company supports the French in their energy renovation project (insulation, heat pump, photovoltaic...).

Committed to democratizing the energy transition, TUCOENERGIE offers a turnkey offer.

From the feasibility study to the completion of the work, including the administrative procedures and the collection of aid, TUCOENERGIE enables everyone to control their energy bill.

Its model pays particular attention to supporting French people, which can reassure the 33% of French people in the Nexity study.

Source: lefigaro

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