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France may raise CSPE by up to 2.3% in early 2016

The French energy regulator, Commission de régulation de l'énergie (CRE), plans an increase of the CSPE rate (renewable and social surcharge on electricity bills) by 2.2% to 2.3% in early 2016.

This rise is due to a strong increase in the expenses (+17% compared to 2014), which should exceed €7bn in 2016: charges related to the remuneration of renewables should account for 2/3 of this charges, with solar PV and wind power accounting for more than half of these charges, at €2.7bn (39%) and €1.2n (17%), respectively. The CSPE could increase to €22.5/MWh, representing 16% of the electricity bill.

To limit the growth in the CSPE, the French government is considering integrating the surcharge in the TICFE (domestic tax on final electricity consumption). In a second phase, the financial support to renewable electricity will be shared by all energy consumers, and not only electricity consumers, through the "contribution climat énergie" (CCE) as of 2017.

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