Electricity Prices in Europe: How does France compare?
France enjoys one of the lowest electricity prices in Western Europe; at €0.211 per kWh in 2018, the average cost of electricity in France is 26.5% cheaper than the EU average (20.02 euro cents per kWh). However, with electricity markets in France deregulated, customers have a choice of supplier and price plan, meaning the price you pay for electricity could be lower or higher than this figure.
Average Electricity Bill in France
With the average household in France consuming about 4670 kWh electricity (in French) in 2015, the average annual electricity cost in France ranged from 773.95€ - 731.38€, depending on the electricity provider and plan chosen. This works out to an average monthly power bill of about about 66.50€ - 60€ per month.
Factors in the Price of Electricity in France
The price of electricity in France includes three types of costs:
- The cost of generating the electricity itself: this represents about 31% of the cost of electricity for residential customers. About 75% of electricity generated in France comes from nuclear-generated power
- Delivery costs: this is known as the TURPE (Tarif d’utilisation des réseaux publics d’électricité - Usage Tarif for Public Electricity Networks) and represents about 33% of the residential customer cost of electricity. The TURPE covers the costs of delivering electricity from power generating facilities across high voltage lines (managed by the RTE - Réseau de Transport d'Electricité) and local distribution lines (managed by the ERDF, which covers about 95% of France)
- Taxes: there are several taxes that are applied to electricity consumption (see below), and when put together, they represent about 31% of the cost of electricity for residential customers
Four types of taxes on electricity apply to residential customers:
- CSPE (Contribution au Service Public de l'Electricité - Contribution to the Public Service for Electricity): helps financing renewable energies, tariff equalization on the whole territory, and the basic needs tariff. In 2016, the CSPE cost 22,5€/MWh.
- TVA (Taxe sur la valeur ajoutée - value added tax, VAT): represents 20% of the price of a kWh and 5,5% of the subscription rate.
- TCFE (Taxe sur la consommation finale d'électricité - Tax on the Final Consumption of Electricity): goes to townships and districts, and changes according to your locality. In 2016, it could not exceed 9,6€/MWh.
- CTA (Contribution Tarifaire d'Acheminement - Tariff-based contribution to delivery): 27,04% of the fixed part of the TURPE. Used to finance specific pension rights of employees of the gas and electric industries.
Electricity Supply Options in France
Competitive Pricing Offers
There are two price options for competitive pricing offers, which are offered by all suppliers operating in France.
- Fixed prices offer a guaranteed price for electricity that stays the same over a certain time period.
- Indexed prices offer a discount off of the pre-tax regulated rate price
Some competitive suppliers also offer renewable energy plans, while others offer competitive offers for dual fuel plans.
Check out this other article to find out all the tips and tricks to lower your electricity bills!
The regulated tariff for electricity is set by public authorities, and can only be sold by EDF, the historic supplier in France. This is a variable rate that changes according to what public authorities set.
While this is not necessarily the case in other countries, in France competitive suppliers offer lower prices than the regulated tariff, meaning that you can save money on energy by comparing supply offers.
|Happ-e||% discount on the pre-tax regulated tariff rate, for 2 years|
|Directe Electricité||discount on the pre-tax regulated tariff rate, no limit|
|Offre unique d'électricité 100% renouvelable|| % discount on the regulated tariff subscription charge (under conditions)
|Regulated tariff||No discount|