Electricity: bigger bills likely in 2023
The war in Ukraine had little impact on Monegasque residents’ and businesses’ electricity bills in 2022, but things could get tougher next year.
In an interview with Monaco Info, Thomas Battaglione, CEO of SMEG (Société Monégasque de l’Electricité et du Gaz), explained that the post-Covid-19 economic upturn is leading to an increase in energy demand (electricity, gas, oil, etc).
At the same time, supply is being disrupted by the Russian-Ukrainian conflict, with reductions or even suspensions of Russian gas supplies to the West, and by the gradual shutting down of nuclear power plants in Europe.
As a result, supply in Europe is becoming increasingly difficult. There is a real risk of shortages, and price increases seem inevitable.
Stable prices this year
Price increases are already being felt in France and other countries such as Germany, but have yet to hit Monaco. The Principality has been spared until now, because although SMEG buys its electricity and gas on the European markets, it was able to secure supplies before the start of the war in Ukraine and the beginning of the health crisis.
The 2022 tariffs are therefore more or less the same as in previous years.
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40% increase in 2023
“For 2023, we are in exactly the same situation as all the European countries,” warns SMEG’s CEO. The company is now buying electricity at much higher prices. This means that if purchase terms remain unchanged, prices will increase by 40% for Monegasque residents and companies.
This substantial increase could lead to hardship for lower-income households and smaller businesses, especially since inflation is being felt in other areas. Food, real estate, fuel… the current price hikes are across the board.
In order to lighten the load, SMEG is working with the Government to set up a buffer mechanism. In France, for example, the Government is relying on the price cap. The scheme sets a ceiling for energy price increases so as to protect the French population’s spending power.