The Court of Auditors was concerned about the influx of French bills

The Court of Auditors was concerned about the influx of French bills

Posted on

But on December 18, 2024, a scathing report from the Court of Auditors returned to the debate on the unstoppable increase in electricity bills. He criticized the TURPE system and warned: the price of electricity will rise in the coming years if there is no change.

TURPE: A “toll” on electricity that is a heavy burden on households

But behind this technical rationale, the consequences are alarming. The Court of Auditors sounded the alarm: between 2023 and 2030, the cost of TURPE could increase by 10 euros per megawatt hour, an increase of 21%. For consumers, this surge translates into higher bills. Households find themselves bearing the burden of large investments, sometimes badly expected, to maintain and develop a network that is considered important.

The network operators, RTE and Enedis, are facing many challenges. RTE plans to invest 100 billion euros in 2040, while Enedis hopes for 96 billion. These amounts aim to respond to several major challenges: modernizing the sometimes dilapidated infrastructure, connecting new solar and wind installations, and supporting the electrification of utilities, especially the charging stations. charge for electric vehicles.

However, the Court of Auditors, in its report on December 18, 2024, revealed a worrying combination. These costs, which would have been accompanied by an increase in electricity consumption, are based on predictions that will not happen. The country’s consumption has stagnated, or even decreased, thanks to energy conservation efforts and reduced industrial activity. As a result, part of the planned investment may not be necessary, leading to the enlargement of networks. A strategic mistake will cost consumers a high price.

Electricity prices: RTE and Enedis have received huge dividends

The criticisms continued. The Court points to excessive remuneration of network administrators. Between 2017 and 2023, RTE and Enedis would have benefited from financial gains of 500 million euros each, an amount considered disproportionate due to the limited risks they face. In fact, these networks are natural monopolies, essential for the transport and distribution of electricity.

Why apply high risk premiums to players who are not exposed to real competition? The Court called for an overhaul of their remuneration system, as well as better regulation of the dividends they pay to their shareholders.

An unequal distribution of electricity charges

In addition to the question of network management, the report raises a fundamental problem: the distribution of the costs of consumer bills. Today, almost 70% of the electricity bill corresponds to tax and TURPE, while the part related to the actual consumption of electricity is decreasing. This pricing structure raises two questions.

On the one hand, this reduces the incentive for consumers to adopt ethical behavior. If saving electricity has little effect on the overall bill, why bother? On the other hand, it highlights inequalities. Low-income households, often forced to limit their consumption, still find themselves paying a bill raised by fixed costs they cannot reduce.

Electricity market reform is needed

The Court proposed ways for reforming the electricity market. Among them, better regulation of dividends paid by RTE and Enedis, to limit excess profits. It also recommends a review of the TURPE structure to better reflect the real needs and paying capacities of consumers. But are these steps enough to restore trust?

More broadly, the debate on electricity bills reflects a broader issue: energy management in France. Between regulation, social justice and environmental requirements, balance is difficult to find. Yet it is important. Because the credibility of the energy transition is at stake.

Leave a Reply

Your email address will not be published. Required fields are marked *