Despite the end of the price shield on electricity next February, many individuals will benefit from a reduction in the regulated price of nearly 14%, according to a decree published on Saturday. The tax increases planned in the initial finance bill will ultimately not come into force.
The price shield on electricity will end on February 1 but without the tax increase initially planned by the government, according to a decree published on Saturday, allowing an expected drop of 14% in the regulated price for individuals.
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Return to pre-crisis level
The decree stipulates that the tax 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, therefore allowing the tariff regulated 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, both by the RN and by 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, in vain.
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The decree published on Saturday “concerns the end of the tariff shield which had been put in place following the sharp increases linked to tensions on the electricity market in 2022 and 2023”, it was explained in the entourage of Minister of Industry Marc Ferracci, contacted by AFP.
“The tax increases provided for in the finance bill do not come into force” and “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.
