The French will pay ten percent more for electricity after the abolition of special measures

From August 1, France will cease to operate government measures aimed at reducing electricity prices, which will lead to their increase by 10%. These measures, which include control over electricity tariffs for households and small businesses, were introduced in 2021 and have been regularly extended. However, from August 1, the “tariff shield” mechanism, which limited the growth of tariffs for the population, will cease to operate.

The increase in prices will affect more than 22 million French citizens, which is about a third of the total population of the country. According to radio station Franceinfo, the average electricity bill for apartment owners will rise by about 150 euros per year (from 1,700 euros to 1,850 euros) and for home owners by 278 euros.

In July 2022, French President Emmanuel Macron instructed the government to develop an “energy sobriety” plan that involves the responsible use of energy for both businesses and citizens, given the reduction in gas supplies from Russia and the suspension of half of the country’s nuclear power plants for repairs and maintenance. The government has pledged to limit gas and electricity price increases to 4% by the end of 2022.

However, French Prime Minister Elisabeth Born later announced that starting from the beginning of 2023, electricity prices will increase by 15%. The government estimates the costs of price containment at 16 billion euros. Elisabeth Born noted that without these government measures, the monthly electricity bill for the population would have increased by 200 euros per year, and not by 25 euros.

Thus, as a result of two increases in electricity prices this year, the French are facing an overall increase of 25%. Due to high energy bills, many businesses in France, including small businesses, energy-intensive industries and municipal swimming pools, have been forced to close.