The electricity price shield will end on February 1, 2025… But without the planned tax increase. Good news and a boon for households who will benefit from a 14% reduction in their bill. According to a decree published this Saturday, the tax on electricity (excise) will mechanically rise on February 1 to its pre-crisis level, adjusted for inflation, i.e. 33.70 euros per megawatt hour for individuals compared to 22 euros Currently.
The decree published this Saturday “concerns the end of the tariff shield which had been put in place following the sharp increases linked to tensions on the electricity market in 2022 and 2023”, explained the entourage of the minister in charge of Industry and Energy, Marc Ferracci, contacted by AFP. “The tax increases provided for in the initial finance bill do not come into force” and “the reduction in electricity prices should be, as announced by the Prime Minister (at the time Michel Barnier) on November 28, by 14% in 2025,” added this source.
The decree therefore confirms the absence of an additional increase desired by Michel Barnier to clear the public accounts, a flagship measure of his finance bill which fell with the vote on the motion of censure. The planned increase would have brought in up to 3.4 billion euros into state coffers, but would have had the consequence of limiting the reduction in household bills to 9%.
The “pride” of the RN
This emblematic measure had been forcefully contested in Parliament, particularly in the National Assembly, as well by the National Rally (RN) as by La France insoumise (LFI) and the votes of Les Républicains (LR), fearing for the users’ bill. . In a final concession to avoid the fall of his government, Michel Barnier renounced this increase on November 28, 2024, without however avoiding censorship a few days later.
RN officials were delighted with this announcement on the social network in 2025,” says RN president Jordan Bardella. “The RN is very proud to have protected the French from a budget of punishment and recession,” welcomes the MEP.
For several months, electricity prices have fallen sharply on international markets and subscribers to the regulated sales tariff (TRV), i.e. 76% of households, will therefore benefit from this despite the end of the tariff shield. Small and medium-sized businesses subscribing to the TRV, whose excise duty – excise duties on energy are indirect taxes collected on the sale or use of energy products – will only be increased to 26.23 euros/MWh on 1 February 2025 according to the decree, will also be beneficiaries.