Studies and analyses - Electricity prices: a 15% drop possible in the short term (and an essential structural reform of the french market)

This article analyzes the components of the price of electricity, and its evolution since the start of the energy crisis in 2021. This analysis leads to the following conclusions: There is already room for a 15-20% reduction in the price of electricity in France for individuals and very small businesses, without burdening public finances by reducing VAT to 5.5%. EDF and a number of other suppliers are already offering market prices 15-20% below the regulated tariff. The Regulated Tariff for the Sale of Electricity (Tarif Regule de Vente de l'Electricite - TRVE) provides false protection for consumers, and creates windfall effects by burdening public finances. The French electricity market, organized under the NOME law, needs to be structurally reformed, so as to safeguard nuclear production at the best possible cost for French households and businesses, and to ensure the financing of investments to extend the lifespan of the fleet and its renewal. This presupposes negotiations with our European partners, to go further than the reform of the European market agreed in 2023, which gave nuclear power access to the financing tools used for renewable energy production