Electricity: individuals will be encouraged to be more flexible in order to pay less

Europe 1 with AFP 11:23 a.m., August 26, 2022

This winter, individuals and small businesses in France will be encouraged to moderate their electricity consumption during cold-related demand peaks, in exchange for advantageous rates the rest of the year, the Ministry of Energy Transition announced on Thursday. .

The government actually wants to relaunch and expand an offer similar to what generations of French customers of EDF have known as tempo, which encourages lowering the heating on certain days to pass the winter peaks, but which was no longer actively offered to consumers.

An advantageous rate all year round

The objective is to reduce the tension on the electricity supply, while the risk of shortage increases for this winter with the forced shutdown of many nuclear reactors, which is currently boosting wholesale electricity prices to never before seen levels.

The idea will be, for voluntary customers, to pay a very attractive rate for the year, but in the event of a peak (20 to 30 “red” days per year), to reduce or even cut off their consumption.

These individuals or SMEs would be notified the day before the peak, and if on D-Day they consume, the rate will then be much higher than on other days.

To help and encourage electricity suppliers (EDF and others) to offer these so-called “tariff reduction” formulas, the State has planned a call for tenders with a budget of 30 million euros.

Industrialists who are large consumers of electricity have been familiar with the "diffuse load shedding" system for years: during a peak in electricity demand in the country, they agree to stop their production lines for a few minutes or a few hours, and are rewarded in exchange for contractual remuneration.

For industrialists but also individuals

The government launches a call for tenders for this every year.

This summer, he received the promise to be able to "erase" 5 gigawatts (GW) of consumption in the event of an emergency, from industrialists but also from individuals.

To launch the new extended load shedding system, the Minister for Energy Transition has just written to electricity suppliers.

"The government intends to strongly encourage behaviors that reduce consumption at the most tense times, helping to reduce the tensions on our electrical system as well as the costs," writes Agnès Pannier-Runacher.

It will target “consumers like flexible SMEs who can organize their consumption, or residential consumers who have electric heating and a wood stove in the living room,” the ministry added.