Tariff shield: the increase in the price of electricity capped at 15% in the Overseas Territories

The measure concerns all territories, except New Caledonia and Polynesia. Without this tariff shield, the increase could have reached 99% according to the Energy Regulatory Commission.

Electricity prices increase this Wednesday, February 1. But this increase was capped at 15% by the government, including overseas. The measure nevertheless excludes New Caledonia and Polynesia which have their own tariffs.

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For a year, tariffs had been frozen by the government as part of the tariff shield. “This protection device is added to that of the tariff equalization of the Overseas Territories as non-interconnected zones”, specifies the Ministry of Overseas in a press release. Tariff equalization refers to the idea that two consumers -here an Ultramarine and a person residing in France- pay the same price for the same service, even if they live in different geographical areas.

The price increase affects the whole of Europe. It is due to the war in Ukraine and the restart of post-Covid-19 pandemic activity, which, by increasing demand, caused prices to soar.

Without this adaptation measure, the price of electricity by companies located overseas could have increased more significantly, which could have weakened them.

Overseas Ministry

Without the tariff shield decided by the State to protect consumers, electricity should have increased not by 15% on February 1, but by 99.22%, according to the scale made public in January by the Regulatory Commission for electricity. energy (Cre) and set according to the cost of supplying electricity on the wholesale markets.

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