Electricity price: can I change provider after the increase?

Electricity price: can I change provider after the increase?

PRICE OF ELECTRICITY 2022. The wholesale price this summer exceeded 1,000 euros per MWh. Which encourages some customers to redirect to a historical provider.

[Mis à jour le 7 septembre 2022 à 08h11] What is happening with the price of electricity? Stabilized around 700 euros per MWh this week, it shot up during the month of August, exceeding 1,000 euros. Direct consequence: customers of alternative providers are caught up in this unprecedented increase because these famous providers are subject to the wholesale price and its impressive fluctuations that sometimes represent up to an additional 50% per invoice and per client. These providers are not modeled in the regulated tariff. Race results: If you sign a contract with this type of energy provider, you run the risk of paying a high price for the increase. Keep in mind, however, that there is a solution to overcome this type of extreme situation: the principle of reversibility. In other words, you have the option of returning to an incumbent provider, at the regulated rate, by making the request to a provider such as EDF.

This increase in the wholesale price of electricity can be explained by the temporary closure of 32 French nuclear reactors and the insane increase in gas prices. If the coming winter turns out to be particularly cold, restrictions may be put in place, but “they will not affect households”, as Prime Minister Elisabeth Borne said in France Inter on September 2 after the Energy Security Defense Council. Agnès Pannier-Runacher also made it clear that the French energy giant “EDF has committed to restarting all reactors by this winter.” That is, the 32 reactors currently closed, enough to measure the exceptional situation in which the country finds itself. The President of the Republic Emmanuel Macron spoke from the Elysée Palace on Monday, September 5: “The price in this European electricity market must be formed in a much more coherent way and in connection with production costs. The price of electricity in the European market is too dependent on marginal contributions, particularly from gas at peak times, which means you have an electricity price that is disconnected from the reality of production costs.”

Will this increase in wholesale prices have a real impact on your electricity bill? Not really. At the moment, clients of established suppliers such as EDF are covered by the tariff shield established by the government. That is, the increase in electricity prices is capped at 4% until the end of 2022. We recommend that you prefer these offers indexed to the regulated tariff, such as EDF, which is set by public authorities. The prices set by the State through the “EDF blue rate” (regulated) are available here. However, be careful, once the end of the tariff shield is ratified, potentially at the end of 2022, the prices charged by EDF could also increase, especially at the beginning of 2024.

In August 2022, the price of a megawatt hour exceeded 1,000 euros, compared to 103 euros in September 2021. In other words, the wholesale price of electricity was multiplied by 10 in just one year. This vertiginous increase is explained in the first place by the impressive increase in the price of gas (+1,500%), destined precisely to produce electricity. The war in Ukraine has accentuated the gas shock phenomenon, Russian gas deliveries to Europe are slowing down, making energy more and more expensive. In addition, France is a country that has to import massive amounts of electricity due to the low production of its nuclear park. The closure of many nuclear reactors in France also has something to do with it.

Bruno Le Maire told Le Parisien an increase “by 20 terawatt hours (TWh) in the volume of nuclear electricity sold at a reduced price by EDF to its competitors, to increase it exceptionally from 100 to 120 TWh.” “This measure will be automatically transferred to the bills of individuals, be they homes or businesses, that buy their electricity at a regulated rate,” he asserts. “These volumes will be accessible to all consumers, individuals, communities and professionals, through their provider, under the terms that will be specified very soon,” the Ministry of Ecological Transition said in a press release.

And specifically, what impact on your bill? “To be very specific, for a 60 m² flat, the average electricity bill is 1,000 euros. Without this agreement, it would have increased by 350 euros”, values ​​the Bercy tenant. “There it will increase 40 euros. For a house of 140 m2, with a bill of 2,000 euros, it would have increased by 650 euros, it will increase by 80. The decision we have made is massive and effective”.

So should we expect a recovery and thus an extremely high bill in 2023? The Minister of Economy wants to be reassuring. “Absolutely not. There will be no recovery leading to a new increase in 2023. It is the State and EDF who will bear the cost of this measure”, he underlines.

As of August 1, electricity prices have already been revised upwards. This increase is due to the evolution of the TURPE (fee for the use of the public electricity network), a tax that aims to ensure the maintenance of the network and its modernization. The average increase is 0.91% for MV/LV consumers. It is 1.39% per year for the TURPE 6 period (2021-2025). HTB consumers show an annual increase of 1.09% and 1.57%. Has your electricity consumption increased in recent months? It must be said that with the successive lockdowns, sometimes cooler temperatures and teleworking, there is enough to increase the final bill. In this context, are you looking for alternatives to pay less? Linnaute.com directs you to its dedicated archive for compare electricity prices :

At EDF, you can choose between regulated tariffs and the market offers. In the first scenario, as explained above, prices are set by public authorities. EDF offers three different offers: a basic offer (in which the price per kWh remains the same regardless of time and frequency), a low season offer (in which the price per kWh is more advantageous between 22: 00 and 6:00) and a so-called “Tempo” offer (where the price per kWh varies according to the time of day and the days of the week).

The latter corresponds to households with “an electricity subscription of at least 9 kVA [et qui disposent] of an alternative way of heating, like heating with wood, for example”, explains one on the EDF site. To learn about EDF’s market offerings, visit the website. Do you want to know more about how electricity prices are calculated? We answer your questions. Are you looking to switch providers in the current context? Check out our dedicated archive before you start:

Based on the latest Eurostat data, the price per kWh in France will reach €0.1946 in 2021, well below the average of the 27 countries of the European Union (€0.2203/kWh). The rate is much higher in countries such as Germany (€0.3193/kWh), Denmark (€0.2900/kWh) and Belgium (€0.2702/kWh).

* OlaWatt is a Le Figaro-CCM Benchmark group site, like Linternaute.com

Sometimes it can be very difficult to tell the difference between the different offers on the market, as there are so many parameters to consider (read above).

You can also visit the website of the national energy mediator: energie-info.fr. In particular, you will find a comparator, here, in which you will have to specify your current tariff option, the subscribed power and your electricity consumption. UFC-Que Choisir also offers a comparator, here. Next, you will get an informative list of the most advantageous offers according to your profile. When you compare offers, always take into account the power you contract, the type of rate you want and your annual consumption (expressed in kWh).

Are you looking for another comparator? BeMove’s Olawatt* also offers a comparison tool. You must enter your address, as well as your annual consumption and then your contact information to receive a summary of your request.

Are you looking to carry out an energy rehabilitation work in your home? Do you know My Prime Renov’? This system was implemented last year to replace the energy transition tax credit (CITE). Since January 1, this famous bonus affects all households, regardless of their income level. The amount of financial assistance, paid at the end of the job, depends on the resources of the household, the location of the accommodation and the nature of the job. For more information, see our dedicated article:

In addition to taxes, the price of electricity that you will pay depends on multiple factors. Linnaute.com summarizes the criteria for you:

  • The subscription you make, whether they are rates regulated by EDF or a market offer. : You can generally choose between two contracts, a basic rate and a low season offer. In the first case, the price per kilowatt-hour (kWh) of electricity remains the same. In the second scenario, it evolves according to consumption peaks. Clearly, it is cheaper at night, between 10:00 p.m. and 6:00 a.m.
  • Your consumption: lighting, household appliances, computers, television, internet installations… All this equipment consumes energy, even if it is on stand-by! You are looking to reduce your consumption. Read our article: Saving electricity: our advice
  • The power of your electricity meter : 3,6,9 or 12 kilovolt-amperes (KVa).
  • The offer: the prices are obviously not the same from one provider to another.
  • The billing frequency. : It goes without saying that it can have an impact on the final billing. If you use your equipment more in the winter, for example, this will inevitably affect your bill.

Do you want to know more about what makes up the price of electricity? Check out our dedicated archive:

Total, Direct Energie… What alternatives to EDF?

Are you looking to get out of EDF’s regulated tariffs? You’re not alone: ​​100,000 customers are laid off every month, according to the Energy Regulatory Commission. By changing supplier, large consumers, who consume 8,000 kWh, can save “one hundred euros” a year, according to 60 million consumers in its October 2019 edition. Total Direct Energie, Eni, Engie’s Happ-e, EDF… Whether you prefer a market offer or regulated rates, you can find all the offers online.

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