The impact of your electricity bill on the energy transition

It's not always easy to know whether a particular behavior can have a real impact on the ecological transition. However, some simple actions can have a significant impact, like... paying your electricity bill! Enerfip explains how this simple gesture can have a concrete impact on the energy transition.

Understanding your electricity bill

Before diving into the impact of your bill on the energy transition, it's important to understand its composition. Contrary to what you might think, your bill doesn't only finance the electricity you consume.

1. Transmission (31%):This part covers the cost of transporting electricity to your home. Tariffs are set by the Energy Regulatory Commission (CRE) and are paid to the network managers, Enedis and RTE.
2. Taxes and contributions (21%): These are broken down into 3 categories.
   The Transmission Tariff Contribution (CTA) helps finance the costs of energy transmission and distribution, as well as the pensions of employees of the electricity and gas industry regime.
   – The Domestic Tax on Final Electricity Consumption (TICFE), often still called by its former name, the Contribution to the Public Electricity Service (CSPE), contributes to the financing of the energy check and the development of renewable energies.
   – Value added tax applies to the price of electricity excluding tax and the TICFE, at a rate of 20%, as well as to the price of the subscription excluding tax and the CTA, at a rate of 5.5%. These amounts are collected by your supplier and paid to the State.
3. Supply (48%): This is where the real difference lies. This part is divided into two:
   • 8% for the supplier's management and development;
   • 40% for the energy itself. It is on this 40% that you have the power to act by choosing a green electricity supplier.

Green electricity: between promises and realities

Choosing a green electricity supplier therefore seems sufficient to support the energy transition. But what is it really?

The Guarantees of Origin system

Green electricity suppliers rely on the Guarantees of Origin (GO) system. For every MWh of electricity you consume, your supplier must prove that a MWh of renewable electricity has been injected into the grid. This system provides financial support to renewable energy producers! It promotes the competitiveness of the sector and the development of new renewable production sites.

The limits of the system

Unfortunately, Guarantees of Origin have their limits. They do not guarantee the financial traceability of electricity. In reality, with this system, only 3% of your bill actually finances the production of renewable energy. Indeed, with guarantees of origin, we do not know who benefits from this additional remuneration. Since this is a European system, it could be a French installation... or one from any European country! Similarly, guarantees of origin do not allow you to know from which energy sources the supplier is supplied. These can be renewable installations... or fossil fuels!

Towards a more efficient energy transition: joint purchasing

Faced with these limitations, a more efficient solution is emerging: joint purchasing. Some green electricity suppliers, such as elmy in France or EnBW in Germany, are adopting this approach.

Joint purchasing is a game changer!

Joint purchasing involves simultaneously purchasing Guarantees of Origin and the associated electricity from a renewable energy producer. This method guarantees:

• additional remuneration for the producer;
• total transparency on the supplier's supply;
• a real impact on the energy transition, since 40% of your bill directly finances the production of renewable energy.

Your bill becomes a lever for action!

Choosing a supplier that practices joint purchasing is a simple and effective way to contribute to the energy transition. Without any additional effort on your part, you are helping to make renewable energies more competitive compared to fossil fuels.

Your electricity bill thus becomes a real lever for change. Similar to what some banking solutions allow for responsible savings, you can now take concrete action for a more sustainable energy future, simply by paying your electricity bill.

Ultimately, the energy transition is not just the business of major industrial or political players. Every consumer, through informed choices like that of their electricity supplier, can contribute to building a greener and more sustainable energy future.