Michel Barnier’s about-face on the price of electricity: what economic consequences?

Electricity taxes will not increase. Prime Minister Michel Barnier announced this Thursday in an interview with Figaro. This increase was seen as a red line from the National Rally which has been threatening censorship for several weeks. An about-face which means a greater reduction in regulated prices next February.

The Prime Minister intended to take advantage of the planned drop in regulated electricity prices, due to the fall in market prices, to pass a greater increase in taxes in the budget. But faced with the threat of censorship, the Prime Minister will be content to raise taxation to its level before the tariff shield for households with regulated tariffs.

“This could result in a drop of 14%”

The bill will therefore drop even more sharply than expected, as Nicolas Goldberg, energy expert at Colombus Consulting, explains to Europe 1. “This could translate into a reduction of 14% on an electricity bill. If you live in a 50 square meter all-electric home at regulated rates, that could mean a reduction of fifteen to €20 per month,” explains -he.

It remains to be seen what this backpedaling will cost the State. Originally, the government expected more than 3 billion euros in additional tax revenue. For the 40% of households subscribing to market offers, the bill will however increase. A lesser evil for the latter, who benefit from the sharp drop in market prices recorded in recent months of around 20%.