Michel Barnier in favor of a “meeting clause” on the planned tax increase

The Prime Minister said he was in favor of this proposal put forward by the president of the right-wing group, Laurent Wauquiez.

Michel Barnier said he was in favor, Tuesday, November 12, of a “meeting clause” on the planned increase in the tax on electricity prices. This solution would make it possible to modulate it and remain within the objective of an overall reduction of 9% in regulated prices on February 1st. The Prime Minister affirmed this in the National Assembly, after a question on the subject from the president of the Republican Right group, Laurent Wauquiez.

The government intends, in the draft budget for 2025 which is about to be examined in its initial version by the Senate, to tax electricity at a higher level than the period before the energy crisis, hoping to obtain 3 billion euros which would help to fill the deficit. This measure was rejected from the finance bill by a coalition of oppositions and LR voices, who cited the risk for user bills and the lack of room for maneuver left to Parliament to control the decided increase.

In its copy of the finance bill, the government promised a 9% reduction in the electricity bill for “80% of French people”. It will take into account both the decline in wholesale prices on the electricity market and the increase in the electricity tax (excise), to return to the situation before the tariff shield.

The government explains that it is waiting to know more about the level of the drop in market prices to determine the level of tax increase. “I support the fact that there can be this variability which is also proposed to be able to take into account market prices exactly on January 1st”explained the Minister for Energy, Olga Givernet on BFM Business. The 9% reduction planned for February 1 concerns subscribers to the regulated electricity rate or indexed to this rate, or 76% of households, according to the energy regulation commission.