Published on: February 01, 2025 | Article No: 297 | By: @rprasanth_kumar
France’s Energy Regulatory Commission (Commission de Regulation de l’Énergie – CRE) has announced that regulated electricity tariffs in France will decrease by 15%, from 1st February 2025. This decision follows the end of the electricity price shield, confirmed by a decree published on 28th December 2024. The reduction will benefit 70% of households.
Reduction in Electricity Bills
- Consumers with contracts indexed on the regulated tariff (for example: EDF’s “Tarif Bleu”) will see a 15% price cut.
- The new regulated price is set at €239 per MWh (including taxes), down from €281 per MWh in February 2024.
- Alternative electricity suppliers with market offer indexed on the regulated tariff will also reflect this reduction.
- The actual reduction in your electricity bills will depend on your electricity provider and the type of contract.
Electricity Prices and Consumer Options
Consumers in France have different electricity contract options:
- Regulated Tariff (tarif réglementé): Set by public authorities, available from EDF and local distribution companies.
- Fixed-Rate Contracts (tarif fixe): Prices remain unchanged for the contract duration.
- Indexed Tariffs (tarif indexé): Prices fluctuate based on regulated tariff variations.
- Market-Based Pricing (prix du marché): Prices adjust according to wholesale electricity rates.
Consumers on market-based contracts may not benefit from the February 2025 tariff reduction, because their tariffs have already adjusted based on market trends.
Electricity costs in France depend on several factors:
- Wholesale electricity market prices, which significantly influence retail rates.
- Electricity production, distribution, and supply costs.
- Taxes and regulatory charges, including VAT and transport costs.
- The price of gas because part of the electricity produced and imported comes from gas-fired power plants.
- The cost of CO2 quotas.
For a consumer with a regulated tariff, a standard electricity bill comprises the following:
- 38% of the cost is related to the supply.
- 36% to various taxes.
- 26% to transport, the TURPE (Tariff of Use of Public Electricity Networks).
Did you know? The National Energy Ombudsman “Le Médiateur national de l’énergie” provides a free independent online comparator to find the best electricity and gas providers in your area.
Impact of Tax and Network Fee Adjustments
While electricity prices are decreasing, other factors will affect overall costs:
Return of Pre-Crisis Electricity Taxation
- The accise tax on electricity (formerly TICFE) will revert to its pre-2022 level.
- The new tax rates will be €33.70/MWh for households (up from €21/MWh in 2024) and €26.23/MWh for small and medium enterprises (SMEs) (previously €20.5/MWh).
- The tax increase is linked to inflation and was initially proposed in the 2025 Finance Bill but later revised to ensure a minimum 9% decrease in the regulated electricity tariff.
Increase in Network Usage Fees (TURPE)
- The CRE has confirmed a significant increase in TURPE from 1st February 2025, instead of its usual annual revision in August.
- This 7.7% increase for distribution is accompanied by a 9.6% increase for transport.
- For a standard household with an output of 6 kVA, this component amounts to about 56 € per year in 2025.
- The CRE forecasts a 10% increase in TURPE for the period 2025-2028.
- This tariff funds electricity distribution infrastructure in France and directly impacts consumer bills.
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Conclusion
Despite the increase in taxes and network fees, the regulated electricity tariff will decrease due to the declining wholesale market prices. Households on the regulated tariff or indexed contracts can expect lower electricity bills, while those on market offers should review their contracts to assess potential cost changes.
To ensure the best deal, you should compare offers from various electricity providers and consider switching contracts if necessary.
