Bruno Le Maire hinted on Monday that there would be no freeze on the regulated electricity tariff (TRVE) as demanded by consumers, while reaffirming that the price increase would not exceed 10%. "We are going to discuss with the Prime Minister and the President of the Republic the final figure that will be retained, but I repeat what I have always said, which is that I keep my word, there will be no increase in the price of electricity of more than 10% in the coming days," said the Minister of the Economy during a visit to the Gravelines nuclear power plant (North).
The regulated electricity tariff, which benefits the majority of households, is reviewed twice a year, on 1 February and 1 August. And on Friday, the consumer association UFC-Que Choisir had asked the government for a "freeze" on this regulated electricity tariff, while prices on the wholesale market have eased sharply in recent months after the historic surge in 2022.
" READ ALSOSOARING nuclear electricity production of EDF in France in 2023
"Money doesn't fall from the sky"
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I have always indicated that we must collectively get out of the energy shields, we have all collectively spent more than 40 billion euros to pay the gas bill and the electricity bill of the French during the inflationary crisis, no other country has done this," Le Maire recalled. "I have always indicated that this exceptional cannot last, it is too costly for our public finances, it costs too much," he added, stressing that "money does not fall from the sky". For him, it is "too easy to suggest that we can spend billions and billions of euros" when there are "needs on hospitals, schools and public services".
The executive has already almost doubled the excise duty on gas - a tax paid by natural gas suppliers - since 1 January, which is expected to drive up the bill for fixed-price gas subscribers, about half of all subscribers. In terms of electricity, it intends to increase the domestic tax on final consumption of electricity (excise duty), which is currently 1 euro per MWh. Before the crisis, it was 22.5 euros.
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Many experts, including myself, believe that an increase in the excise duty on the electricity tariff would be a serious mistake at a time when people are being encouraged to electrify their uses for heating or vehicles," said Nicolas Goldberg, an analyst specialising in energy, at Colombus Consulting, at the end of December. "It would be a mistake to raise it to the previous level, because for two years, in 2022 and 2023, electricity tariffs have increased by an average of 30% in France, which is unprecedented. The message sent by the government would be catastrophic," he said.