Energy prices are a flammable issue and the electricity bill could aggravate the already tense discussions around the 2025 budget, which the government will present on Thursday. The Ministry of Budget and Public Accounts confirmed, on Sunday, October 6, information from the newspaper The Parisian published the day before according to which Bercy would consider increasing a tax on electricity.
According to the newspaper, “Bercy is working on an increase in the tax on internal final consumption of electricity (TICFE) beyond 32.44 euros per megawatt hour [MWh]What was the level of taxation before the inflationary crisis ». Currently, this tax is set at 22 euros per megawatt hour. Questioned by Agence France-Presse, the ministry acknowledged that this hypothesis was being studied: “It is planned to go further, but at the moment there is nothing definitive, it will be submitted to parliamentary debate”it was declared.
Pannier-Runacher warns against “double punishment”
On Sunday, the Minister of Ecological Transition and Energy, Agnès Pannier-Runacher, warned against “the risk” go too far by increasing this tax. The fall in prices in the international market “allows us to return the tax that the French paid before the energy crisis to the pre-crisis level”warned on France 3. “We simply should not go any further”said.
METROme Pannier-Runacher called to be “very vigilant”. “If we go further [des 32 euros/MWh]The risk is that there will actually be an increase in the price of electricity. We must be very attentive because the modest French and the middle classes (…) will have double punishment. Many times they are the ones who live in thermal strainers”according to the minister.
The previous government organized the gradual end of the tariff shield, a very expensive device for the State, estimated at 110 billion euros from 2021 to 2023. It thus increased the amount of the TICFE in February from 1 to 21 euros/MWh and intended to increase it up to 32.44 euros/MWh in February 2025, that is, its level before the increase in inflation, while this tax had been reduced to a minimum to alleviate the bills of the French during the energy crisis. Raising it to 32.44 euros/MWh should allow the State to recover 5,000 million euros.
Despite the end of the tariff shield, French people with regulated tariffs should expect a drop of at least 10% in their bills in the same period, the Energy Regulatory Commission (CRE) estimated in September.
“The fall in market prices will more than offset the increase in this tax. We will be around 10% [de baisse] for the 80% of French people who pay regulated electricity prices »said the Government spokesperson, Maud Bregeon, in the program “Political Questions” (France Inter, France Télévisions, the world). However, if the tax exceeds 32 euros/MWh, the consequences could be different.
More than 20 million customers
From individuals to companies, everyone is affected by the increase in the TICFE: subscribers to the EDF regulated tariff (the so-called blue tariff, peak/valley tariff or Tempo offer), that is, more than 20 million customers, but also individuals and professionals who have subscribed to a fixed or variable price market offer from an alternative supplier.
Agnès Pannier-Runacher highlighted the effect that an increase in this tax would have on companies: “It is also an important element for manufacturers, for bakers, because when there are taxes, they are seen in their costs. And here we will also have to be attentive.”he insisted. “The arbitrations are underway and it is Parliament that will decide” during the budget review next week, he concluded.
Within the framework of regulated rates, the price is set by public authorities, at the proposal of the CRE. “20% [de clients] that have unregulated prices can easily switch to regulated prices”declared the ministry to AFP.
