Electricity supply: what is the difference between regulated tariff and market price?

Many households are still asking this question. Appeared since the opening of the sector to competition, these themes raise a lot of questions and even controversy. Find out how to take these criteria into account to identify an electricity supply that may meet your expectations.

Regulated tariff, a prerogative of EDF

This expression designates the blue tariff of the incumbent operator. It is set by government authorities on a proposal from the Energy Regulatory Commission. It usually undergoes a modification in January, taking into account the amount of the contribution to the public service of electricity. The price per kilowatt can also change in August. EDF and a few local distribution companies apply the regulated tariff. Deemed excessive, it nevertheless comes in different offers more or less advantageous for users with specific needs. Many households remain subscribers to the incumbent operator and bear these different prices.

Market price, the nerve of competition

This theme enshrines the liberalization of the sector by the public authorities. Suppliers set their tariffs without interference from the state and the Energy Regulatory Commission. This allows them to market electricity in a way that covers their costs and generates a financial margin. EDF subscribers can also freely choose between the regulated tariff and market prices.

This competition represents a real boon for users as it systematically drives down prices. Some alternative providers like Total Direct Energie emerge from the lot with very interesting proposals. Born of the alliance between Total Spring and of Direct Energy, this company is distinguished by the great versatility of its services. It sells both electricity and gas. Go to the platform suppliers-energie.fr to discover his different offers intendedIt is for households as well as for professionals and Internet users. The market price falls into two categories.

Fixed price offers

The supplier agrees to invoice you for a invariable tariff per kilowatt over a fixed period, the duration of which generally varies between 1 or 4 years. Your operator will not be able to pass any increase in costs on to your bill. You will also not be able to expect a reduction in case of lower regulated tariff. With this option, you eliminate the uncertainties associated with price fluctuations of the market. Your electrical charges are therefore unlikely to swell overnight. Fixed-price proposals remain very popular with the majority of subscribers.

Offers at indexed price

You can also ask your supplier to systematically adjust the kilowatt rate to changes in the regulated amounts set by the public authorities. It will apply an index to determine the new value to be taken into account. He will take care to keep the same gap. With an indexed price, you should expect to often receive increasingly steep bills. On the other hand, you automatically benefit from a reduction in the event of a drop in the cost of electricity.