How should the government cope with the planned increase in electricity prices? On Thursday, the Commission of energy regulation (CRE) to conduct a hearing on this subject, in the presence of all the suppliers in the market. The regulator has proposed an increase of regulated tariffs of 6%. The figure revealed by “The Echoes” is not a surprise. The act states specifically that the supply costs of EDF are passed on to the consumer, and it’s been several weeks that the principle of a significant increase, of more than 5%, is mentioned. Initially, this movement to a tariff – which covers more than 25 million homes – would have had to intervene at the beginning of the month of February. But that was before the rise of the crisis of the yellow vests, who has led the government to decide whether freezing of electricity tariffs for at least the winter.
This freeze announced by prime minister Édouard Philippe does especially not that the French will escape to an increase of electricity. Several times in the past, whether it be for gas and electricity, the successive governments have decided not to follow the recommendations of the CRE. But the opponents of EDF and Engie have brought the matter before the Council of State, the name of a distortion of competition caused by the absence of a tariff increase: each time, they were heard, forcing the public authorities to conduct catch-up on the invoice, necessarily unpopular.
Philippe suspends the terms and conditions for the technical control and freezes the price of the electricity – to Watch on Figaro Live
The government has three months to make a decision
In the present case, the government is doubly exposed: on the one hand, the increase recommended by the CRE is consistent, on the other, a movement tariff would be virtually regarded as provocative, given the social crisis that is current. At the same time, the government is attentive to the interests of EDF, which relies heavily on the increase to meet its heavy – path of investment. Accuracy: the increase in regulated prices, due primarily to the increase in market price, deals only with the part supply of the invoice. It is composed of 40% of taxes, that the government could decide to lower so as to not too penalize the consumer while meeting the recommendations of the CRE.
On the strict plan of the schedule, the government has three months to make a decision. If it does not move, the increase will be approved. If he refuses the increase, it shall give reasons for its decision, and thus opened the door to a court battle. In short, the question of energy tariffs then becomes a true psychodrama, with a government that refuses to implement an increase, knowing beforehand that he will lose the battle before the Council of State.
