Pending a new budget, the government has suspended the increase in the price of electricity (excise). As a result, the regulated electricity price should see a drop of 14% on February 1, 2025. A breath of fresh air for French households who will see their purchasing power increase at the same time.
During the winter period, energy expenses constitute a significant part of the household budget. Electricity is particularly one of the items that weigh on the purchasing power of consumers. And the fear of seeing the bill rise further is felt by many households as the government plans the end of the price shield in the coming months.
Against all expectations, French households will ultimately be able to benefit from a drop in the price of electricity. Pending a new budget, the government has postponed the increase in the regulated electricity price. As a result, the price of electricity is expected to fall by 14% from February 1, 2025. Enough to allow consumers to reduce their energy expenses a little during the winter as specified in this decree published this Saturday, December 28, 2024, by the government.
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Electricity: a drop in price despite the end of the tariff shield
As reported by our colleagues from BFMTVthe decree published this Saturday “concerns the end of the tariff shield which was put in place following the large increases linked to tensions on the electricity market in 2022 and 2023”. As a reminder, Michel Barnier planned last November to increase the tax on electricity in order to obtain 3.4 billion euros to fill the public deficit.
A decision supposed to limit the reduction in the regulated tariff to 9% for households in February 2025. Faced with the outcry from the opposition, the former prime minister had renounced this increase in a final concession which did not prevented from being later censored by parliament. In the absence of a budget vote, this measure presented in the 2025 finance bill remains pending.
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Electricity prices: a drop which concerns more than half of subscribers
This expected drop in electricity prices offers a breath of fresh air to households in France. “The tax increases provided for in the initial finance bill do not come into force” and “the drop in electricity prices should be, as announced by the Prime Minister on November 28, 14%. in 2025″we tell the government.
Despite the lifting of the price shield, 22.4 million French households and businesses will be able to benefit from a reduction in the price of electricity from February 1, 2024. Note that this only concerns the regulated sales tariff (TRV) to which more than half (56%) of subscribers to the electricity network have access. Although temporary, this drop will undoubtedly be welcomed with open arms by individuals and professionals who will be able to benefit from it.
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