Electricity prices will reduce for most French households in January
However the government will seek to increase tax on usage
Low global energy prices have contributed to the incoming drop
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Around 80% of households in France will see their electricity bills drop in January, the new government’s spokeswoman confirmed.
The drop – which will be around 10% of annual costs – comes amid falling energy prices and the return of several nuclear power plants that were down for maintenance to the electrical grid.
Bill-payers on a regulated tariff will benefit from the drop.
Read more: Electricity bills set to fall by around 10% for millions of households in France
Maud Bregeon, spokeswoman for the new Michel Barnier cabinet, confirmed the drops would take place despite an increase in the Taxe intérieure de consommation finale sur l’électricité (TICFE), also set to come into force in January.
“It's not a hike, it's a return to normal,” she said of the tax that was suspended in 2022 during the energy crisis, before later being reinstated in 2024, in an interview with France Inter.
“In any case, the fall in market prices will more than compensate for this tax,” she added
Households on a non-regulated tariff may also benefit from falling electricity prices, although this will be up to options taken by their energy provider and is not guaranteed.
Concerns over raising energy tax
The government believes that raising the TICFE tax will help bring much-needed revenue, and if brought in at the same time as the price drop, will not sting bill-payers’ wallets.
The exact increase of the tax is still being debated, but predictions are that it can raise between €1.5 billion to €4 billion in revenue, at the same time as allowing bills to fall.
The previous government under Gabriel Attal confirmed they were looking to bring the tax back to its 2022 level (a rate of €32 per MWh of electricity used) in January 2025.
The new government is reportedly looking into taking advantage of the global fall in energy processes to increase this, up to potentially €37 per MWh.
However, changing the TICFE tax can be complex, and cutting into the drop of energy bills may prove to be an unpopular decision at a time when Mr Barnier said taxes on most people would not increase in France.
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“We have to be very careful. There are a lot of false or out-of-date hypotheses circulating [about income from the TICFE],” unnamed source close to the government was quoted as saying in Le Figaro.
