the regulated rate for individuals will fall by 14% on February 1

the regulated rate for individuals will fall by 14% on February 1
the regulated rate for individuals will fall by 14% on February 1

[Article publié le 28 décembre 2024 à 11h54, mis à jour à 12h05] The regulated electricity price for individuals will drop by 14% on February 1, according to a decree published this Saturday. And for good reason, the price shield on electricity will end on this date but without the tax increase initially planned by the government.

The decree stipulates that the tax (excise) will mechanically rise on February 1 to its pre-crisis level, adjusted for inflation, i.e. 33.70 euros per megawatt hour for individuals compared to 22 currently, but without any additional increase, allowing therefore, the regulated price can 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%.

Electricity prices have fallen sharply

This flagship measure of the finance bill had been forcefully contested in Parliament by both the RN and LFI and LR voices, fearing for users' bills. In a final concession to avoid the fall of his government, Michel Barnier renounced this increase on November 28, without however avoiding censorship a few days later.

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 202”we explained in the entourage of Minister of Industry Marc Ferracci, contacted by 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 announced by the Prime Minister 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 (TRV) contracts, or 56% of subscribers, will therefore benefit despite the end of the tariff shield.

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