Electricity: why are prices rising so much for professionals and not for individuals?

Electricity bill multiplied by… ten! Bakers in Yvelines, Nathalie and Jean-Marc almost suffocated when they received a new schedule from EDF at the end of October. “I got hit on the head,” the 40-year-old Parisian said in late December. Like them, thousands of companies have received new electricity bills in recent weeks. But unlike individuals, the price of electricity for professionals is in the hands of energy companies and therefore is most often on the rise.

However, a few years ago, companies could take advantage of the Regulated Electricity Tariff (TRT). This price per kilowatt-hour is determined by the state, more or less out of touch with the market price and therefore very protective, especially when prices rise. However, as of January 1, 2021, this regulated tariff has been abolished in favor of opening the energy market to competition for companies employing fewer than ten people with a revenue of no more than two million euros.

The regulated tariff has been canceled for most companies, they are forced to subscribe to market offers from electricity suppliers (which are now under pressure from the state). The prices under these contracts are freely set by the energy company and are therefore more closely linked to energy prices, which themselves fluctuate with supply and demand. The formula is similar to a mobile or internet plan, the price of which varies depending on the operator, the client, the needs of the latter and the availability of commercial offers.

Contracts that become cannonballs

These contracts may have a commitment period, a fixed price, a temporary or permanent discount, and conditions for an increase. Thus, a bad contract can become a burden on its holder. That’s why bakers will be able to stop their offer free of charge in the event of “outrageous” price increases and to the extent that it “threatens the survival of the company,” Economy Minister Bruno Le Mayor said on Tuesday. “exceptional measure” for bakers only, applied “on a case-by-case basis”.

If people see their electricity bills increase to a lesser extent, it is because they can still benefit from the regulated tariff. And that the tariff shield adopted by the government, limiting the 15% increase in tariffs for 2023, applies only to this one. Individuals who would not trade their eventual market supply for a regulated supply could also end up with accounts that explode (unless they are indexed to TRV). EDF, the only company offering a regulated supply, also recorded an influx of new customers when the first “alternative” providers raised their prices, encouraging their customers to leave them.

As far as gas is concerned, the regulated tariff for companies is a distant memory. They had to subscribe to market offers from the end of 2020. For individuals, subscription to contracts at a regulated price is no longer possible from November 2019. For those who have not changed their offer since then, you can still use it … until July 1st. . On that date, these contracts will automatically switch to market offers. And then all people will obey market offers.