What will ultimately be the electricity bill for homes and businesses? It is evident that prices are falling in the wholesale market. But taxes could rise more than expected. Seeking revenue before presenting its 2025 budget to Parliament, the government plans to increase taxes on electricity even beyond what was announced by the previous ministerial team.
Questioned on Sunday, October 6, the day after an article published online by The ParisianThe environment of Laurent Saint-Martin, minister responsible for the budget and public accounts, does not specify the“magnitude” potential increase in the internal tax on the final consumption of electricity. However, now he maintains that user bills will go down“about 9%” for the majority of French people from 2025 (the previous executive rather predicted a drop of 10% to 15%).
The provision refers to subscribers to the regulated sales rate or to those who have subscribed to a market offer indexed to it. Because EDF’s “blue rate”, as it is known, is set by public authorities. For other types of contracts, with alternative suppliers, the vagueness is even greater.
“Additional burden for the middle classes”
Initially, in February 2022, the executive reduced the tax per megawatt hour for individuals from 22.50 euros to 1 euro, the minimum allowed by European legislation. It was the time of the “tariff shield.” This was aimed at counteracting the increase in energy prices seen in the wholesale market, where suppliers source their supplies.
At the beginning of 2024, Bruno Le Maire adjusted this special tax to 21 euros. While he was Minister of Economy and Finance, he already announced, by 2025, the increase to 32 euros per unit, with the prospect of 5 billion euros of additional tax revenue.
In the Bercy offices, where Antoine Armand replaced him in September, the idea now would be to go beyond that amount. An idea that is far from achieving consensus, even within the government. “While it is normal to gradually exit the tariff shield and return to the level of taxation prior to the crisis, going further could place an additional burden on the middle classes, the poorest households and our industrial fabric.”the Minister of Ecological Transition and Energy, Agnès Pannier-Runacher, reacted on Sunday. He also expresses his hope that electricity, which is already low-carbon, mainly thanks to nuclear and hydropower, will not be “It is not overloaded compared to fossil fuels” (oil, gas, coal), which are harmful to the climate.
