After gasoline, will electricity increase sharply in 2019? – 29/11/2018



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Economy

Our electricity bill could increase by 12 euros on average in 2019./ Photo AFP

Our electricity bill could increase by 12 euros on average in 2019./ Photo AFP


Our budget will flare up. While fuel tax increases on January 1 are confirmed by the government (+6.5 cents for diesel, +2.9 cents for gasoline), electricity could, in turn, experience a strong increase next year.

The projected increase is + 2.3% in 2019 and + 3.3% in 2020 according to the newspaper Today in France. The fault is the obligation for EDF to resell part of its nuclear production to its competitors.

Originally, the Nome law pbaded in 2011, was intended to avoid any distortion of competition between EDF and other operators in the electricity market (Direct Energie, Engie, Leclerc, etc.) by also making them benefit from the "rent" of nuclear power. How? By creating a price of 42 € / megawatt hour fixed by the public authorities, regardless of the price of electricity on the wholesale market. These competing operators can buy a quarter of the French electricity production each year for their customers.

For the first time, the volume of electricity demanded by competitors should exceed the volume offered. Seven years after the law, nuclear generation no longer meets the demand of these operators and their customers. Impossible, suddenly, to buy EDF enough megawatts hour at a price of 42 € / MWh. They should then provide electricity with both this regulated tariff and the conventional energy market. The regulated tariff of EDF ("blue tariff"), which concerns 80% of its private customers, could also be adjusted.

The tariff increase, which remains to be officially confirmed, would result in Today in France by an increase in the electricity bill of € 12 in 2019 and € 17 in 2020.

Electricity prices in France have risen sharply by 35% in 10 years.

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