Reasons why the price of electricity has risen
According to a government study, buildings are important players in saving energy, representing 44% of total energy consumption in France. They also produce more than 123 million tonnes of CO2 every year.
The cost of electricity depends on the price for its production, supply, marketing, logistics, and the price of gas. On top of all this, there are also energy taxes (CSPE, CTA) and VAT to consider.
The CO2 allowance also rose from €30 to €80 between January and December 2021, equating to a staggering 140% increase since the start of the year.
This price hike, however, can be traced back to major factors:
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The impact of the increased power demands and measures implemented.
Wholesale prices went up from €50 per MWh at the start of 2021 to €222 per MWh by December 2021. This continued to rise to €700 per MWh throughout summer 2022 and inevitably affected companies’ energy bills—some being doubled, tripled while others have seen a six-fold increase.
French companies felt the effects of these higher energy prices in both their business operations and their profit margins. The government did, however, introduce various measures to limit the increases:
- A price cap for freelancers and SMEs with fewer than ten employees. It stipulated a maximum rise of 4% on the price of electricity between 01 February 2022 and January 2023
- Government financial assistance (TICFE et ARENTH) awarded to other enterprises. The price increase in electricity in February 2023 will be subject to a price cap limiting it to 15%.
- Energy reduction plan – European governments’ are calling for users to reduce electricity consumption by at least 10%. The aim of the plan is to lower the price of energy bills, give people back their purchasing power and bring back normal market competition. It also allows France to become independent and no longer reliant on Russian gas imports and sidestep winter power shortages.
But how to allow businesses to contribute to this energy reduction without them suffering from the increased energy price?
Solutions that let them reduce their consumption for the greater good without themselves being disadvantaged?
There are several different options that companies can use to help them lower their energy costs and therefore support the European effort—at no risk to themselves.
The Business Management System (BMS - Gestion technique de bâtiment (GTB))
Enables building heating and ventilation to be calibrated to actual requirements. An efficient solution that helps achieve considerable energy reductions resulting in up to 15% lower energy bills—and from the first month of signing up.
More efficient UPS systems or ones with eConversion mode
A device that allows a system to be isolated and provides backup power in the event of issues or power outages, allowing for the energy stored in its batteries to be redistributed to European companies and households.
More economic, eco-friendly data centres
Innovative systems that enhance data centre cooling, reduce their carbon footprint, and put companies in a position to employ the right measures for their structures.
For more information on our solutions please see our website: