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with the tax increase, will your bill increase in 2025?

with the tax increase, will your bill increase in 2025?
with the tax increase, will your bill increase in 2025?

The government will present the budget for 2025 this Thursday, with 60 billion euros in savings that divide even within the central bloc. One of the fears is an increase in electricity bills.

How much will your electricity bill be next year? The end of the price shield, initially planned for December 2023, has been postponed to February 2025. It will therefore lead to an increase in prices for certain subscribers, but not all.

This will depend on the contract you have signed. If you pay for your electricity according to the regulated rate, like four out of five French people, your electricity bill will still drop next February, because this rate, set by the State, will be adjusted according to big price drops on the market.

Except that it will fall less than expected, because the consumption tax will be increased due to the end of the tariff shield. The previous government had predicted between 10 and 15% drop, it will be more like 9%, Bercy says today.

The excise tax (the consumption tax, ex-TICFE) will be reduced to its pre-energy crisis level and will increase from 22 to 32 euros per megawatt-hour, or even beyond. Enough to allow the State to recover at least 5 billion euros.

Low-income households most affected?

“It’s very worrying, because it means a big increase in taxes,” fears a player in the sector. An increase which will weigh particularly on low-income households, observes specialist Maxime de la Raudière.

“The prototype of the home that will be most affected is a home heated by electricity, with poorly insulated housing because as a result, it consumes a lot for heating. And heating is the biggest expense on an energy bill,” he says.

20% of households will see their bill increase. It is those in market supply who are already benefiting today from the fall in electron prices.

Victor Joanin with Guillaume Descours

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