Michel Barnier backed down and announced that the increase in electricity taxes would ultimately be limited. Here are the consequences on your bill.
He ended up backing down…or almost! Michel Barnier has just announced that he had “decided not to increase taxes on electricity in the 2025 finance bill”, in an interview with Figaro. A statement to qualify. The Ministry of the Economy specifies that the level of the TICFE will increase, but not beyond what was already provided for in the law. Thus, this tax will increase from 0.021€/kWh to 0.032€/kWh. The government will therefore not go to the €0.042/kWh initially planned (or even more). However, this limited increase will make it possible to reduce the bill for French people at the regulated sales tariff (EDF blue tariff). According to the Prime Minister’s calculations, this means a reduction in the bill of 14% from February.
A highly flammable project which was vigorously opposed by the National Rally, it planned to increase state revenues much more than initially planned, at a time when the price of energy was going to fall. Under pressure, the head of government finally reversed course and acceded to the RN’s request in the face of the risk of censorship which threatens him.
16:34 – How much more will I pay in taxes?
On the annual electricity bill, the amount of TICFE paid will therefore increase. For a 60m² apartment occupied by two people, the annual sum will increase from €100.80 to €153.60. For a 120m² house occupied by four people, this will increase from €231 to €352. However, this increase will not be felt on the overall bill since the price of electricity alone will have decreased significantly.
16:20 – Which lines on my invoice will change in 2025?
Difficult to read, the electricity bill will therefore see a few lines change from February. If the subscription remains at the same price, the “consumption” line, and more particularly the “kWh price excluding tax”, will decrease. The new amount is not yet known but it is certain that it will be lower. The following line, “Transport tariff contribution”, will remain the same, while the “Contribution to the public electricity service”, will increase. It will go from €0.021/kWh to €0.032/kWh. Overall, the bill will still decrease.
16:17 – A tax will still (a little) increase
After Michel Barnier’s announcement, the Prime Minister’s entourage clarified the contours of the measure. The Ministry of the Economy indicates that the TICFE will return to its level before the tariff shield. Today at €0.021/kWh, it will therefore be increased to €0.032/kWh. This will not prevent the final bill from reducing significantly. Initially, Michel Barnier planned to increase it to €0.042/kWh.
16:07 – How many French people are affected by this announcement?
This announcement from Michel Barnier, which therefore targets the regulated electricity sales price, concerns 20 million households in France, or 59% of consumers (individuals and professionals combined) according to the Energy Regulatory Commission.
15:57 – When will I see the reduction on my bill?
The reduction in the price of kWh of electricity will apply from February 1. The new price is not yet known but it will apply from the February invoice, received at the end of the month or at the beginning of March. However, this may also depend on the billing frequency you have chosen.
3:50 p.m. – I have a fixed price market offer contract: what will my invoice look like from February 1st?
For holders of this type of contract, the invoice price will not change, either upwards or downwards. In fact, on these offers, the price per kWh is fixed, being guaranteed for one or two years. It therefore does not vary according to the market. Households and businesses who have this contract will therefore not see any change in their bill.
15:42 – How do I know if I am affected by the announced drop?
Between the market offers which will fall, the fixed prices, the different operators etc., it is difficult to find your way and, above all, to know if you are concerned. However, it is very simple to find the answer to this question. For an Engie customer, all you have to do is take their last electricity bill. On the penultimate page, after the box “Payment by TIP S€PA”, a section concerns “Your energy contract with Engie”. There it indicates the name of your electricity contract with, in parentheses, what it refers to. The people who will benefit from the 14% price reduction are those who have the words “market price” written next to the name of their contract.
3:30 p.m. – What types of contracts are affected by the drop in electricity?
Although many electricity offers exist, the one which will be affected by the greatest reduction is that which concerns contracts at the regulated electricity sales rate. This concerns in particular EDF’s “Blue Tariff”. In total, 20 million French people will be winners.
15:22 – How much will my electricity bill go down?
According to figures announced by the Prime Minister, the electricity bill should fall by 14% for the majority of French people from February 2025.
15:20 – There will be no increase in electricity taxes in 2025
“I have decided not to increase taxes on electricity in the 2025 finance bill,” Michel Barnier has just announced Figaro. While the government wanted to increase taxes in 2025 to generate more revenue, the Prime Minister finally backed down in the face of the threat of censorship brandished by the oppositions. Good news for the French wallet.