the pitfalls to avoid at all costs and the good deals with the reduction in the regulated price

the pitfalls to avoid at all costs and the good deals with the reduction in the regulated price
the pitfalls to avoid at all costs and the good deals with the reduction in the regulated price
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The electricity market is experiencing significant developments in recent years. And the least we can say is that the announced reduction in the regulated sales tariff (TRV) from February 1, 2025 offers opportunities to make savings.

Pitfalls to avoid with decreasing electricity

This reduction in electricity prices, estimated at around 15%, can significantly reduce consumers' bills. On the other hand, be aware that some offers seem attractive at first glance. But they could turn out to be less advantageous than it seems.

Offers indexed to the TRV, which apply a discount on the price excluding taxes (HT) per kilowatt hour (KWh), are among the most interesting options in this context of falling electricity, underline our colleagues at MoneyVox.

A striking example remains Primeo Énergie’s green loyalty offer. It offers increasing discounts on the price excluding tax: 15% for the first six months, 20% for the following six months. And 25% beyond one year of contract.

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Electricity prices: who will be the big winners and losers from February 1?

For a household consuming 8,500 KWh per year with a 9 KVa meter, this offer could generate a saving of 278 euros after the reduction in the TRV, according to the media. Plus, with the discount increasing to 25% after 12 months, the savings would be even more substantial in the long term.

Antoine D'Ornellas, director of the individual market at Primeo Énergie, made several revelations on the subject to MoneyVox. He indicated on electricity: “Indexed offers are poorly understood by individuals”.

Before also adding: “They tend to go for those with fixed prices, which at first glance offer greater discounts. However, in these times of falling regulated prices, indexed offers with discounts are sometimes more interesting”.

Comparisons to make

While indexed offers offer good potential for electricity savings, be aware that not all are equal. Simulations carried out for a household based in , with similar consumption, show significant disparities.

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For example, Vattenfall's offer offers a 10% reduction on the excluding VAT price of KWh compared to the TRV. While that of Alpiq offers only 4%. Fixed price offers guarantee a stable price over a given period.

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They can therefore seem reassuring. On the other hand, with the expected fall in the TRV, their attractiveness decreases. According to Antoine D'Ornellas, a fixed offer displaying -30% on the excluding VAT price of the current KWh will only be equivalent to a reduction of 12% compared to the new TRV.

Sylvain Le Falher, co-founder of Hello Watt, told MoneyVox: “In 2024, we were seeing prices more than 20% cheaper for certain market offerscompared to the regulated rate. From next month, the difference will be around -10% or -15% at most”.

Despite the drop in the TRV, certain costs could increase the electricity bill. The increase in the Tariff for Use of the Public Electricity Network (TURPE), combined with that of excise, a tax on energy, will lead to an increase in fixed charges.

A household that consumes 8,500 KWh per year could thus pay around 140 euros more per year. To avoid unpleasant surprises, consumers must remain vigilant and compare offers regularly. As Sylvain Le Falher points out at MoneyVox, “the right approach is to check that its offer is always interesting when comparing« .

Source : MoneyVox

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