the announced drop hides an unpleasant surprise

the announced drop hides an unpleasant surprise
the announced drop hides an unpleasant surprise

French households, already affected by repeated increases in electricity prices, were hoping for a respite after recent announcements of reductions. However, between fiscal measures and new taxes, the reality is more complex than it seems.

A drop in prices, but gray areas

Faced with social and political pressure, Prime Minister Michel Barnier announced a rollback on one of the key electricity taxes. As part of the 2025 Finance Bill, he decided to renounce an additional increase in excise on electricity (formerly TICFE).

On paper, this decision promises a drop of 14% of electricity pricesthus exceeding the initially planned reduction of 9 %. This measure appears to be a breath of fresh air for households and businesses hit hard by soaring energy prices and inflation.

However, industry experts point to gray areas. If the excise on electricity remains limited to 32 euros per MWh (compared to 21 euros currently), it is in fact a capping rather than a total freezing of the tax. In 2022, this tax was temporarily lowered to 0.50 per MWh thanks to the tariff shield, but this period is over.

Taxes, a growing weight on the electricity bill

Currently, taxes represent approximately 30% of the electricity bill of a household, including specific amounts such as:

  • The TVA,
  • Excise on electricity,
  • And the Turpe (Tax for the Use of Public Electricity Networks).

Although the additional excise increase has been canceled, other tax increases are on the horizon:

  1. VAT on energy subscriptions : It will pass from 5.5% to 20%leading to an additional cost estimated at 21 euros for electricity et 14 euros for gasaccording to UFC-Que Choisir.
  2. Shame on you : This tax, which finances the maintenance of the electricity network, will increase by 10 % in 2025. This corresponds to an increase in 0.066 euros/kWhrepresenting around 80 additional euros per year for an average household.

Gas consumers also affected

Households using gas as a heating source are not spared. According to Selectra's estimates, the annual bill could increase by 45 euros in 2025 due to combined increases in VAT and gas-specific taxes.

what impact for households?

If the announcement of a reduction in electricity prices may seem encouraging, the increases in taxes and levies tarnish this picture. Here are the main impacts:

  • A apparent saving on the electricity bill thanks to the 14% reduction in tariffsbut an effect limited by the rise in taxes.
  • A total increase in costs estimated at approximately 80 euros per yearnot counting the adjustments on gas for the households concerned.

How to prepare?

To anticipate these changes, households can adopt some good practices:

  1. Compare energy offers to find the most advantageous supplier.
  2. Optimize electricity consumption by investing in energy-efficient appliances.
  3. Follow tax developments and adapt their budget accordingly.

The French remain at the mercy of a volatile energy market, but a better understanding of taxes and adjustments can help them better navigate this complex context.

-

-

PREV Nick Suzuki didn’t make Canada’s roster at the Four Nations Tournament, says Marco D’Amico
NEXT living with HIV in France in 2024 remains a journey strewn with pitfalls