Electricity: third rate increase EDF


Electricity: third rate increase EDF

Wednesday, the “Quotidien” declared that the draft resolution transmitted to the regulators didpredict this third increase. This information has been certified then by the Agence France Presse (AFP), after having checked it with a copy of this text.  

According to the “Quotidien” and the “AFP”, the rise of 5% beginning on 1August 2015 should occur “subject to the actual evolution of the electricity prices (of EDF)”.

If the three increases of the “blue tariff” (for residential and small businesses) had been ratified, the prices would have increased by almost 15,8% within two years. Concerning the other prices, for which the required catching-up is less important, the increase on 1 August is 2,7% for the yellow tariff (36 to 250 kVA) and the green tariff (more than 250 kV). Those were basically used by industrials and would remain unchanged, in accordance with the government decree, has declared the AFP.

In accordance with the procedure, the Minister of Ecology and Energy gained on Tuesday the Energy Regulation Commission and the Superior Council of Energy which includes some parliamentarians of his draft. But, their views were only advisory and the government has the free reign to make the final decisions. 

Experts call for the biggest increases

On the other hand, it is sure that the first two increases of the regulated blue tariff will lead to an average increase of a household’s annual bill by 35€, and by 50€ if it heats with electricity.

“The government has decided to stagger over many years the necessary rate increases to cover actual costs, as provided by the law, in order to protect households purchasing power as far as possible”, the new Minister of Energy, Philippe Martin, had pointed out before the controversy over the third increase.

Households and small businesses nearly escape the worst, as the Energy Regulation Commission (ERC) would like to strongly raise tariffs. Last month, the ERC had recommended an increase in the tariffs between 6,8% and 9,6%  on 1 August of this year, and more than that, a 7,6%  recovery to fill the insufficient raises of the previous years.

In order to reduce the bill, the government has also decided upon an initiative towards small consumers by making a downward revision of the low-power subscription costs (3kVA and 6 kVA) to which the majority of the French have subscribed.

 

Adapted from LeParisien.fr