Thursday, July 16, 2015

EDF: the electricity prices increase by 2.5% on 1 August – The Point

The regulated electricity rates will increase on average by 2.5% on 1 August, announced Thursday the Minister of Energy and Ecology Segolene Royal. “The increase will be 2.5% on 1 August, and for some consumers it will be zero, and all drinks including artisans, traders, small businesses,” said Segolene Royal micro BFM TV. On Wednesday, the Energy Regulatory Commission (CRE) had recommended an increase of 8% of the blue tariffs (residential and small business).

This increase included indeed catching up on a year of loss EDF won in 2012 and 2013 when the tariffs did not cover its costs. A first catch was applied in August 2013, with an increase of 5%, and a second on 1 November 2014, this time with an increase of 0.9%. The government had earlier canceled a rate increase of 5% provided the 1st August 2014. Regulated tariffs applied by EDF including some 28 million homes subject to the “blue tariff” Residential, are reviewed each year by the Government after consultation CRE. They coexist with market prices proposed by both the incumbent EDF by alternative suppliers.

Since 1 November 2014, these regulated rates are set according to a new calculation method known as stack . She plans to determine the tariff by the “addition” of the cost of various components of the sector, including the electricity price on the wholesale market, and not by the sole consideration of EDF accounting costs. Excluding catching the CRE said in its annual report on regulated tariffs for electricity sales as residential blue tariff is expected to decrease by 0.9% in the summer of 2015, while the non-residential blue tariff (small business) should he, down 1.6%.

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