French government, electricity producers and the energy regulator, Commission de Régulation de l'Energie (CRE), estimate that the residential electricity bills could rise by at least 30% between 2012 and 2017. Electricity prices grew by 5% in August 2013 and a similar increase is expected in 2014 and might occur again in the summer 2015.
This price increase is linked to EDF's financing needs to modernise France's nuclear fleet, in order to improve safety and extend reactor lifespan. It is also due to the rising share of the "contribution au service public de l'électricité" (CSPE), a fee created to finance geographical tariff equalisation and social tariffs (whose scope has just been expanded to benefit to 4 million households from the former 1.6-million household base) and to finance the integration of renewable energies into the grid. In 2014, more than 60% of the CSPE will be directed to finance renewables, while only 27% will be directed to tariff equalisation, 7% to CHP and 6% to social tariffs. Photovoltaic plant financing through the CSPE is expected to reach €2.4bn (39% of 2014 planned charges), while wind financing will reach €860m (14%).
According to the CRE, EDF's tariff deficit will average €8.4bn in 2014; to cover the loss, the CSPE should rise from €13.5/MWh to €22.5/MWh, i.e. a 67% increase. The government is planning to approve a 2.4% hike, to €16.5/MWh, to limit the bill increase to €15-€20 per household.