Categories: Business

Six tips for choosing your supplier and finding an offer that suits your usage

This is even worse news for the inflation-stricken French. As part of the gradual disappearance of the price shield, which came into effect from the fall of 2021, the government decided to increase the electricity tax on Thursday 1 February, leading to a general increase in the bill. In detail, the 9.3 million households subscribing to different rates between peak and off-peak hours will see an average increase of 9.8%. For 10.6 million families at the basic rate, the increase would be 8.6%.

In this regard, you may consider switching suppliers to avail the most advantageous offer based on your usage. How to navigate between the variety of contracts offered? How to compare them? Here are some tips to guide you in your research.

1 Understand the various offers offered

Two main types of offers exist: offers at regulated prices and market offers. For the former, regulated prices are set twice a year, on February 1 and August 1. It is decided by the state on the proposal of the Energy Regulatory Commission, which makes tariff recommendations for individual consumers and for other professionals. Only EDF and some small historical operators established locally have the right to offer these offers.

Market offers, which are offered by all suppliers, including EDF, display prices set freely by those who market them and are divided into three categories. Some market offers are fixed-price: the company agrees to sell you electricity at a fixed rate for a fixed period of time (for example, one or two years). In most cases, only the price per kWh is really fixed. The costs invoiced for subscriptions and taxes can always change during the contract, underlines the energy mediator.

There are also market offers with variable prices, which follow the evolution of electricity prices. By choosing this option, you expose yourself “Significant increase during contract”Because the purchase price of electricity through your supplier fluctuates strongly depending on supply and demand and especially the geopolitical context, warns the energy intermediary.

Finally, some market offers are indexed to a price set by the state. That means “Their price evolves relative to the regulated rate, at the same frequency and in compliance with the indexation level defined in the contract”, explains the mediator. They therefore do not necessarily have to be the same price as the offer at the regulated rate: a supplier may, for example, commit to a price per kWh that will always be 10% lower than that set by the state.

2 Choose the contract that suits your usage

With a classic contract, sometimes referred to as a “basic option,” you pay for your electricity at the same price regardless of the time of day. But there are also contracts that differentiate between peak and off-peak hours and whose price varies depending on the time of day when you consume energy. Their subscribers pay a beneficial price for their electricity during the 8 off-peak hours, but more expensive than the basic offer during the 16 peak hours. Off-peak hours are not the same for everyone, but are distributed between noon and 5 pm or between 8 pm and 8 am. Time slots are set by the network manager, Enedis, based on your place of residence. They are listed on contracts and invoices.

To make this option economically attractive, you should therefore be able to use a significant proportion (at least 30%) of your electricity during off-peak hours, for example by running household appliances (dishwasher, washing machine) during this period. , and by programming the hot water tank at night. option “less financially attractive than ever for a large number of consumers”, alerts the energy broker. Especially if you telework from home, and therefore consume more during the day. Body provides a simulator to calculate whether such a contract would be profitable for you, based on your usage.

Other subscriptions offer variable prices according to other criteria, such as offers that apply a low price for most of the year, but very high on days corresponding to peak usage, often in winter. A type of contract that requires flexibility to lower your bill.

3 Pay attention to all the elements of the invoice

One of the criteria to consider when choosing your electricity contract is the evolution of prices. When looking at offers, compare both prices per kWh, which will determine the variable portion of your bill, based on your usage; and the subscription, which represents a fixed portion of what you will pay.

Also choose your billing method carefully. Some suppliers offer the possibility to receive invoices every month or every two months, depending on your actual consumption, detailing the energy mediation. In this case, you pay only for the electricity consumed, but the amount paid fluctuates from one bill to another. If the heating in your home is electric, you may notice big differences between the seasons. To simplify your expenses throughout the year, you can choose monthly payments and pay a fixed amount each month based on your estimated usage. However, once the year has passed and your actual usage is known, you receive a regularization bill: a catch-up if you paid too little, or a refund if you used less than expected.

If price is the central criterion for choosing an offer, remember also to compare the services offered: the supplier can be reached by telephone or only on the Internet, payment methods are accepted… Finally, check the existence of possible additional costs , which concerns this. Security deposit, penalty or breakdown insurance in case of unpaid debt.

4 Use an independent comparator

To guide your choice, you can use the offer comparator. Some of these are developed by private companies, which may be paid by energy suppliers, and may not list all available offers. Instead it is advisable to use the comparator provided by Energy Mediator, which is the only public and independent of the sector players. It is complete, as it lists all suppliers. By providing information about your home and your electricity consumption, you will access estimates based on existing offers.

5 For “green offers”, check the supplier’s commitment

Energy companies can market “green offers” aimed at consumers concerned about the climate and the environment. However, this does not mean that customers who subscribe to it are supplied with entirely renewable electricity (wind, hydraulic, solar, etc.). “It is physically impossible to determine the origin of electricity delivered to a given customer”Recalls the energy mediator. “It is the same electricity that is distributed to all customers connected to the French electricity network, regardless of the supplier and the type of offer.”

As part of the “green offer”, the supplier actually undertakes to buy certificates from renewable energy producers in proportion to the electricity it sells to customers subscribed to the offer, called a guarantee of origin. The issuer of this guarantee then injects a quantity of green energy into the network. However, suppliers can purchase their Guarantee of Origin certificate anywhere in Europe, including Iceland. In addition, “The currently very low price of certificates does not really make it possible to finance the development of new renewable energy installations”Energy Transition Agency (Adem) shows.

For greater transparency, Ademe has created a label called VertVolt, which is awarded according to the level of commitment of suppliers to remunerate renewable energy producers in France and support their development. Those suppliers need to specify where and by what means they supply electricity. Eight companies listed on the Ademe website have received this label.

6 Don’t be afraid to change suppliers

Switching electricity supplier is free and easy. If you are not satisfied with your offer, you can choose a new one at any time, recommends the Directorate General for Competition, Consumer Affairs and Fraud Prevention. Even if you have chosen a contract that guarantees more than one year’s worth, for example, it is possible to terminate it before its end.

To change your offer, the only step required is to enter into a new contract. Your new supplier will be responsible for notifying the previous one. The Energy Ombudsman advises against canceling your contract yourself, as you may have to pay a commissioning fee. Whatever happens, you do not risk being without electricity in the meantime: until the date changes, your current supplier will continue to provide you with energy.



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