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The price of electricity in seven questions

Publié le 21 janvier 2022 - Directorate for Legal and Administrative Information (Prime Minister)

As the price of electricity rises in France, the government is planning measures to avoid higher energy bills for consumers, including a price shield and the low-cost sale of electricity by EDF. But why such a hike? How does the electricity market work? The seven-question update.

According to the Minister of Economy, the increase in the regulated price of electricity should not exceed 4% in 2022. This measure is part of the Energy Tariff Shield (Finance Law 2022) which also includes:

  • an additional €100 "energy check" paid in December to the lowest income groups (already beneficiaries of the "energy check"). This is in addition to the €150 for spring 2021 and spring 2022;
  • the freezing of the regulated gas tariff which shall not exceed the October 2021 tariff;
  • To reach this 4% ceiling, the government has planned to:
    • to increase the sales of EDF's production to its competitors at reduced prices;
    • to reduce the contribution to the public electricity service (CSPE), ex-internal electricity tax (TICFE) on 1er february 2022 (article 29 of the 2022 budget law (read more about Vie-publique.fr).

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