Electricity taxes should increase beyond what was planned by the previous executive according to information from Le Parisien. With consequences for consumers.
The government has set out to find billions of euros and complete the 2025 budget. Its search should involve a larger increase than expected in electricity taxes.
According to information from ParisianBercy is in fact working to increase the domestic final consumption tax on electricity (TICFE) beyond 32.44 euros per megawatt hour (euros/MWh), the level of taxation before the inflationary crisis.
This tax is today at an intermediate level of €22.50/MWh and must return to 32.44 euros/MWh from February 1, 2025, as planned by the Energy Regulatory Commission (CRE).
What consequences?
Last June, Bruno Le Maire, former Minister of the Economy, promised a reduction in the bill for “10 to 15%” pour “all French people” to February 1, 2025. A promise made before the budget crisis was declared.
According to The Parisianthis return to normal should not have too much impact on consumers’ bills, because, at the same time, electricity prices are falling.
Who is affected?
Concretely, who would be affected? If this additional increase in TICFE were to apply, it should not lead to an increase in the bill for consumers who have a contract at the regulated rate. However, the 10 to 15% reduction promised by Bruno Le Maire last June could be less significant than expected.
The increase would apply to subscribers with market offers for which prices are set freely by suppliers, i.e. around 40% of households in 2023. These subscribers should see their bill increase on February 1, 2025, summarizes The Point.
“A social bomb”
By how much? “We try to keep the impact as limited as possiblesummarizes a source at Parisian. It will all depend on how suppliers react. And then, each subscriber can switch to another cheaper offer at any time.”
Experts estimate that this maneuver could bring 4.5 billion in revenue to the state. A budget specialist interviewed by The Parisian fears, however, that this increase in prices will be a “social bomb (…). This will affect a lot of households. The less well-off, whose homes are perhaps not the best equipped in terms of thermal comfort and insulation, will be more impacted than others.”
