Par Matias Perea
Energy Analyst
Published on
13/01/2025
min read
Pleasent news for many consumers: the regulated electricity price is expected to fall by around 14% from February 1, 2025. This reduction will mainly benefit households having subscribed to a so-called “Blue Tariff” contract or an offer including the price is indexed to this regulated tariff. However, the application of new taxes – such as the increase in excise duty on electricity – could have the opposite effect on certain electricity offers. The point concerning electricity subscriptions which will benefit from the 14% reduction and the others which will suffer an increase of 9%.
Why can the regulated rate fall despite inflation?
For several months, inflation has affected the budgets of many French people, and the price of electricity is no exception. However, the drop in prices on wholesale markets encourages the Energy Regulatory Commission (CRE) and the government to reduce the “Price per kWh” applied for the regulated tariff. According to the CRE, this decline should be effective from February 1, 2025despite the increase in certain taxes and charges impacting the final bill.
Who will really be able to benefit from the 14% drop?
This reduction will not be automatic for everyone: only subscriptions indexed to the regulated rate, as well as the famous EDF Blue Tariffwill reflect it directly in your invoice. If you have recently opted for price-locked offers, be aware that you will not benefit from this boost; worse yet, you even risk a 9% increase in your electricity bill.
- Current customers of the EDF regulated tariff : you are already on the right track; the reduction will apply without any particular action.
- Customers of an indexed market offer : your bill will automatically follow the trend of the regulated rate.
- Customers of a fixed offer : you will not benefit from the reduction and could suffer from the increase in taxes. However, a change of contract remains possible at any time, without cost or interruption of service.
List of offers affected by the 14% drop in the price of electricity from February 2025
Here is the list of offers which will reduce their prices by 14% on February 1, 2025:
Simulations carried out for a domestic consumption of 6000 kWh per year and a power of 6 kVA in Lyon. Learn more about our Selectra Score.
List of offers which will increase their prices by 9% in February 2025
Regarding offers with locked prices, these offers will not be able to pass on their prices downward. On the contrary, these offers will be subject to the increase in electricity taxes. Ultimately, the amount of the bill for these offers should increase by 9% on February 1, 2025.
Thus, EDF's Zen Fixe offer, the cheapest offer on the market in January 2025, should suffer an increase of 9% and thus lose competitiveness against competitors from the month of February!
Here is the list of offers which will see an increase in their prices from February 1, 2025:
Simulations carried out for a domestic consumption of 6000 kWh per year and a power of 6 kVA in Lyon. Learn more about our Selectra Score.
Return to TRV
If you have left the regulated rate, nothing prevents you from joining it again. Simply contact EDF or a local distribution supplier and ask to benefit from the Blue Tariff. Changing supplier takes place in just a few minutes, with no interruptions or fees.
- Reference offer
- Offer indexed to the regulated rate
Choose an indexed offer
Same principle, you can subscribe to a market offer which follows the evolution of EDF's regulated tariff. So, when the regulated rate drops, your bill does the same. When it increases, you rise with it, but you remain protected from too sudden fluctuations thanks to the regulation mechanism.
Currently, the cheapest indexed offer is offered by Primeo.
- Indexed prices
- Green Electricity Standard: Guarantees of Origin
The question of the disappearance of regulated prices
Regulated prices are regularly criticized, in particular because European law considers them to be an obstacle to free competition. The Competition Authority, in a recent report, also suggested their gradual abolition. However, these formulas play the role of a “shield” for most of the 20 million households who subscribe to them: smoothed over several months, the regulated price cushions as much as possible the major shocks linked to market variations.
On the side of suppliers, who are prohibited from being able to market the regulated price, the tendency is to request its elimination. In fact, these suppliers consider the regulated price as an obstacle to free competition of offers. Furthermore, far from being protective, the regulated price does not closely reflect market reality. This explains the reductions among EDF's competitors, which can go up to 30% compared to the regulated tariff!
In 2024, the regulated tariff is 25% more expensive on average than the market offers from alternative suppliers. He is therefore not protective, he is despoiler.
What to do then?
Despite the planned increase in certain tariff components, the main thing remains the 14% reduction in the regulated tariff planned for February 1, 2025. An excellent opportunity to relieve the bills of the majority of French people, provided they are at the regulated tariff or on an offer which is directly indexed there.
As the worst of the crisis has passed, the current trend is for electricity prices to return to normal. This is therefore the opportunity to change your offer and switch to a subscription which allows you to take advantage of the next reductions.
Selectra advisors are at your disposal at 09 73 72 73 00 Monday to Friday from 7 a.m. to 9 p.m., Saturday from 8:30 a.m. to 6:30 p.m. and Sunday from 9 a.m. to 5 p.m.
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