the essential
The price of electricity will fall by 14% in February. The price shield will end on this date. Why will the price go down? Will all customers be affected? La Dépêche explains.
Prices falling is not common. Electricity will, however, weigh a little less heavily on the French budget from February 1, 2025. The regulated electricity price for individuals will fall by 14%, according to a decree published on Saturday in Official Journal.
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Electricity prices: the regulated rate for individuals will fall by 14% on February 1, 2025
Here's what you need to know to understand the evolution of prices.
The end of the tax shield
The tariff shield on electricity prices will end on February 1, 2025. It was put in place to protect consumers from the surge in electricity prices from 2022. It made it possible to limit it to 4%. Including tax the increase in prices for customers eligible for the regulated electricity price rate and 15% including tax on average from February 1, 2023.
A tax increases but prices fall
From February 2025, the excise tax (ex-TICFE) will increase from €22.5 per megawatt hour (mWh) to €33.70, which was its level before the tax shield. The increase will represent 1.2 cents per kWh. It will be largely offset by the fall in wholesale electricity prices. In February 2025, the kWh should be around 21.5 cents including tax compared to 25.16 cents currently. To date, the annual consumption of an average French household is 5,681 kWh of electricity, representing a bill of €1,429.34.
What are wholesale electricity prices?
The wholesale market is the market on which electricity is bought and sold by professionals before being redistributed to businesses and individuals. Prices were 1,000 euros per MWh in August 2022, compared to 1.69 euros on April 9, 2024, said a study by the Hello Watt comparator published in the spring. If the French electricity bill does not follow the wholesale electricity market, it is because the regulated electricity sales price is regulated by the public authorities. Its revision can only take place twice a year, in February and August, after the proposal from the Energy Regulatory Commission (CRE).
Falling prices not for everyone
The 14% drop on February 1, 2025 will affect 56% of customers. To benefit from it, you must subscribe to the regulated tariff, called TRV but also EDF's “blue tariff”. Those who have subscribed to the peak/off-peak, Tempo or EJP options will have an 8% to 18% reduction in kWh due to the excise tax of a fixed amount. A peak/off-peak subscriber will experience a price drop of 12.6% during off-peak hours and 14.6% during peak hours.
What will change for other customers
Customers who have chosen a market offer with a contract “indexed” to the regulated rate should also benefit from the reduction. Customers who have a “fixed price” offer will have to compare from February 1, 2025 whether their contract remains attractive or not compared to the regulated price. It is in fact always possible to return to this regulated rate at any time.
What do EDF’s competitors offer?
EDF's competitors are going on the offensive again and promising prices cheaper than the regulated rate. Some examples: TotalEnergies announces a price excluding tax that is 25% cheaper than the regulated rate and which does not change for 1 year; ENI – which will soon take the name Plénitude – guarantees a fixed offer for 1 year; Octopus Energy promises a guaranteed price until December 31, 2025; Engie announces a price per kWh excluding tax 24% cheaper than the regulated rate; La Belle Énergie offers a fixed offer with a price guaranteed for 3 years.
Each electricity supplier allows you to run a simulation on their site to help you find the energy offer that suits you best. Comparators are also available to you on the sites of the Energy Mediator, UFC Que Choisir, Selectra or Hello Watt for example.
New offers will certainly appear in February 2025.
