New trend: your electricity bill financed by the public debt

It is still France which, through its tax inventiveness, is at the origin of this trend. On 1 January 2016, the CSPE (Contribution to the Public Electricity Service) was replaced by the TICFE (Domestic Tax on the Final Consumption of Electricity). Many said it was “six of one and half a dozen of the other”, but this was neglecting an important feature of the TICFE: it does not increase! And this, even when public service charges have been increased by more than 40% between 2016 and 2021.

Today, with the reform of the German EEG (Erneuerbare-Energien-Gesetz – Renewable Energy  Act), we are witnessing a real change of scale: on 15 October last, the Bundesnetzagentur (BNetzA) (Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway) announced this good news to German consumers: the EEG contribution (EEG Umlage) for 2021 will drop to 65 €/MWh. Another consequence of this announcement: the federal budget will contribute with €10.8 billion to the development of renewable energies (this contribution alone represents almost twice the French support to renewable energies development in France).

Is Covid to take the blame, again?

Before analysing the scope of these announcements in more detail, we would like to go back over the history of the respective developments of the CSPE – TICFE and the EEG Umlage since their creation (2000 in Germany, 2002 in France).

We have represented their evolution, in the same graph, as an approximation of the cost of the support to renewable energies. For Germany, the special contribution to offshore wind energy should be added (+4,16€/MWh), while for France the support to renewable energies only represents about 60% of the public service charges considered in the CSPE.

Does the relative stability observed in recent years really reflect an inflection in the cost of supporting renewable energies?

In France, the answer is clearly no: and the PPE (Multiannual Energy Plan) even forecasts an increase of these costs by more than 30%, to peak beyond €8 billion in 2025. Formerly a “Contribution”, the CSPE has become a “Tax”: the TICFE, fixed by the finance laws (the carbon tax was supposed to complete the budget balance, but its evolution has been stopped since the yellow jackets crisis).

It is interesting to note that the Energy Regulation Commission, which was in charge of determining the amount of this CSPE – Contribution to the Public Electricity Service – in line with the charges to be covered, continues to carry out the CSPE calculation exercise… but this acronym now has a new meaning: CSPE = CHARGE of Public Electricity Service!

Let us return to the German case. The idea of the new law on renewable energies (EEG) (which has been approved by the cabinet but not yet voted) is similar to the French idea put in place by France in 2016: the contribution is transformed into a tax that is no longer earmarked for dedicated expenditure (France had initially set up a “Special Allocation Account”), with the budget to be balanced by future revenues obtained from the new CO2 tax included under this same law.

It so happened that, without waiting for this law to come into force, the Bundesnetzagentur, together with the Ministry for Economic Affairs and Energy, set the amount at the level provided for by the law – €65/MWh – by letting the federal budget subsidise this contribution (which has not yet been transposed into a tax) to the tune of almost €11 billion.

Without this aid, the amount of the surcharge and, therefore, the amount of the electricity prices, would have reached 96.51 c€/MWh for 2021, thus marking a new clear upward trend in the EEG Umlage.

In its communication, the Ministry clearly attributes the responsibility for this slippage to the health crisis we are currently going through:

This evolution of the cost of financing renewable energies is thus put under the account of the coronavirus crisis, which has weighed on demand and on wholesale electricity prices (renewable production not having been affected by the crisis), and the necessary money will come from the “Corona-Konjunkturpaket” and its 130 billion € which, like the 100 billion € of the “France Relance” plan, are largely financed by the State debt.

What developments are to be expected for the future?

France foresees, in its Programmation Pluriannuelle de l’Energie (PPE) (Multiannual Energy Plan), that the competitiveness of renewable energies will lead to a very significant drop in the need for support for these energies: less than €4 billion in 2035. Germany, for its part, is confident that the new EEG law will pave the way for a post-support mechanism era, a “paradigma shift”.

In fact, what happened this year with the Covid 19 crisis is a drop in demand and, therefore, a drop in the carbon marginality of the electricity mix (wind, photovoltaic and hydraulic production are not experiencing a health crisis). With the French (PPE), German (EEG 2020) and European (Green Deal – a revision of the ambitions of the Directive on renewable energies) ambitions, what we have experienced is, in fact, just some anticipation of what is foreseen by these policies: a drop in carbon marginality in the shaping of electricity prices in the market.

It seems to us that the inability of the “Energy Only” market to remunerate the full costs of power generation is once again largely underestimated. On the other hand, what is not underestimated by politicians, even in Germany, is the difficulty of showing the burden of renewable energies on electricity bills in a transparent manner!

Philippe Boulanger

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Each month, one of our experts publishes an article describing his view on a specific topic of the constant changes taking place in the energy market, with special focus on the French market.

Profesional Experience

Céline, a young and dynamic person, had a first experience in the tourism sector as a community manager at Loups du Gévaudan, in Lozère. She joined HES team in November 2021 to diversify her knowledge: learning about the energy sector, specialising in marketing strategies in order to improve the company’s customer relations and, at the same time, developing her skills in coordination and project management.


Céline graduated in Spanish and English Language, Literature and Civilisation at La Sorbonne IV (2018). She also holds a master’s degree II in cultural projects and establishments management, with a special focus on international tourism. She also studied abroad at the University of London (England) and Universidad de Morón (Argentina).

Céline Haya Sauvage

Marketing Responsible


Investment Advice

“Decarbonization of the Energy and Transport sectors is arguably today’s main economic driver for the industry.”

Profesional Experience

His career started in civil engineering as a Project Manager in France, Martinique and Australia. Afterwards, he became the General Manager of a subsidiary in Venezuela. In 1992, he established Dalkia in Germany (district heating, cogeneration, and partnerships) and represented Véolia in Thailand. In 2000, he opened the commercial office of Endesa in France to take advantage of the liberalized retail market. From 2006, as a development Manager at Endesa France, he led Endesa’s plan for Combined Cycle generation in France and developed the wind and PV portfolio of Snet at the same time. Philippe Boulanger worked for 3 years at E.ON’s headquarters coordinating the company´s activities in France. He was strongly involved in the French hydro concession renewal project. As a Senior Vice President – Project Director at Solvay Energy Services from April 2012 to February 2014 he was in charge of the H2/Power to gas and European direct market access deployment projects. Philippe has been an HES expert since 2014.


Philippe Boulanger holds engineering degrees both from the Ecole Polytechnique and the Ecole Nationale des Ponts & Chaussées (France) and has a combined experience of more than 25 years in energy and infrastructure. In addition to English, Mr. Boulanger is fluent in French, German & Spanish.

Philippe Boulanger

Electricity Expert


“The world is changing. New investors pay particular attention to the energy sector while historical actors adapt their position to the market.”

Profesional Experience

Antonio started his career in the electricity sector in 1991 working as a member of staff for the General Manager of Sevillana de Electricidad (Spain). In 1997, he was in charge of the commercial regulation at Endesa Distribution. In 2000, he joined Endesa’s European M&A department. He was appointed CEO of Endesa Power Trading Ltd in 2003. He became Head of Energy Management for SNET, France, in 2004 and was appointed CEO of this company in 2008. In 2009, he held the position of Head of Corporate Development for E.ON France. In 2011, he founded Haya Energy Solutions (HES), a consulting firm which assists companies in optimizing their value chain: from strategy definition to day-to-day operations, based on a strong experience and understanding of the energy industry. From 2015 to 2018, Antonio was Chairman and CEO of 2 French CCGTs (2x410MW), owned by KKR. At the end of 2018, he joined Asterion Industrial Partners, a dedicated infrastructure investment fund, as an Operating Partner.


Antonio graduated from the Escuela Técnica Superior de Ingenieros of Seville (Spain) and holds an MBA degree from Deusto University (Spain).

Antonio Haya