Good news for your bill, the Senate torpedoes the government's energy strategy

© Unsplash/American Public Power Association

The Barnier government, which had hoped to rake in more than €3 billion in additional revenues has just suffered a major setback. In a surprise vote that transcends political divides, senators have chosen to protect the wallets of French people who use electricity for heating. This decision marks a decisive turning point in the examination of the 2025 budget, at a time when the government is already facing increasingly pressing threats of censure.

The Senate prefers to tax gas rather than electricity

The Upper House has decided. Rather than accept the massive increase in electricity taxes proposed by the government, Senators have opted for an alternative solution: increasing the gas tax. This decision would generate 1.2 billion euros in revenue, significantly less than the 3 billion hoped for by the executive with its electricity tax.

For Jean-François Husson, general rapporteur for Les Républicains, this choice is part of a logic of energy transition. “We must prioritize electricity, a decarbonized energy”, he explains. The figures speak for themselves: with the government's initial proposal, a 100 m² house heated by electricity would have seen its bill increase by 200 to 300 euros per year. With the Senate's solution, homes heated by gas will only see an increase of around 60 euros per year.

Barnier government at an impasse

Laurent Saint-Martin, Minister of the Budget, immediately expressed his disagreement with this rebalancing. The government maintains its position: an increase in the TICFE (tax on electricity) would be preferable, arguing that the drop in wholesale prices on the market would compensate for this increase.

The executive had also committed to reducing electricity bills by 9% on February 1 for 80% of French people. A promise that now seems compromised by this Senate vote. This situation highlights the growing tensions between the government and its traditionally won senatorial majority.

An opposition which crystallizes around the energy question

This setback in the Senate echoes a previous vote in the National Assembly, where a coalition of oppositions had already rejected the government measure. The National Rally even made this issue one of its main arguments for a possible motion of censure against the Barnier government.

Socialist Thierry Cozic sums up the general feeling: “The government has chosen the easy way to find new revenue by taxing electricity again. This measure is socially unjust.” A criticism that finds a favorable echo among many elected officials, all political tendencies combined.

This decision by the Senate could mark a turning point in the examination of the 2025 budget. The government will now have to find other sources of funding to compensate for this shortfall of several billion euros, even though its political position seems increasingly fragile.

• The Senate rejects the increase in the tax on electricity which was to bring in 3 billion euros
• The senators propose to increase the tax on gas for a gain of 1.2 billion euros
• This decision weakens the Barnier government already threatened by a motion of censure

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