What will electricity rates be this winter?

Agnès Pannier-Runacher, the Minister of Energy Transition, announced on Friday, November 3, that the government’s energy shield program would continue to cap electricity rate increases at the beginning of 2024, limiting them to no more than 10 percent, according to her statement.

The minister assured that the increase in electricity prices would remain below 10% at the start of the following year. She made this promise during her appearance on the Franceinfo morning show on Friday, November 3. “Our goal is to ensure that, by February 1, 2024, electricity rates do not rise by more than 10%,” she said.

To fulfill this promise, the government plans to use the energy shield mechanism to offset any potential increases in market rates, even if prices on that market were to skyrocket, as Agnès Pannier-Runacher explained. She also allayed concerns by noting that international electricity prices have been falling since September.

However, estimates released by the Energy Regulatory Commission (CRE) last September suggested a possible increase in regulated electricity rates (TRV) ranging from 10% to 20%. Bruno Le Maire, the Minister of the Economy and Finance, had deemed such a situation unthinkable. It should be noted that the CRE has only an advisory role and does not have the authority to make final decisions.

Agnès Pannier-Runacher also emphasized that electricity prices would remain stable through the end of the year, thanks to the energy shield, which caps electricity prices. She explained that this measure currently allows the government to cover 37% of French households’ electricity bills.