the regulated rate for individuals will drop on February 1

At the start of 2024, the government set itself the objective of gradually ending the energy shield, “get out of “whatever it takes”” and to preserve the balance of public finances…

As planned, the price shield on electricity, put in place by the French government in October 2021 to limit increases in bills, will end on 1^is February, but without the tax increase initially planned by the government, according to a decree published on Saturday December 28, allowing an expected reduction of 14% in the regulated rate for individuals, according to the government.

The decree stipulates that the tax (excise) will automatically go back to 1^is February at its pre-crisis level, taken into account inflation, i.e. 33.70 euros per megawatt hour for individuals, compared to 22 currently, but without any additional increase, therefore allowing the regulated tariff to pass on the drop in international market prices .

The initial budget proposal presented by Michel Barnier planned to increase this tax to obtain 3.4 billion euros in order to fill the public deficit, which would have had the effect of limiting the reduction in household bills to 9%.

This flagship measure of the finance bill had been forcefully contested in Parliament by the National Rally as well as by La France insoumise and some Republican deputies who feared for the users' bill. In a final concession to prevent the fall of his government, Mr. Barnier renounced this increase on November 28, without however avoiding censorship a few days later.

56% of subscribers will benefit

The order published on 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”was explained in the entourage of the Minister of Industry, Marc Ferracci, contacted by Agence France-Presse (AFP).

“The tax increases provided for in the initial finance bill do not come into force” et “the drop in electricity prices should be, as the Prime Minister announced on November 28, 14% in 2025”we added.

Electricity prices have fallen sharply on the markets and the 22.4 million households and businesses with regulated sales tariff contracts (i.e. 56% of subscribers) will therefore benefit despite the end of the tariff shield.