Good news for households: here's why the electricity bill will drop by 14% for individuals

The tariff shield on electricity will end on February 1st but without the planned tax increase: a boon for households who will benefit from a 14% reduction in their bill, in the absence of adoption of the budget, however synonymous with some bad news.

According to a decree published on Saturday, the electricity tax (excise) will automatically 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 therefore confirms the absence of an additional increase wanted by Michel Barnier to clear the public accounts, a flagship measure of his finance bill that fell with the censure.

The planned increase would have brought in up to 3.4 billion euros to the State coffers, but would have had the consequence of limiting the reduction in household bills to 9%.

This emblematic measure had been strongly contested in Parliament by both the RN and LFI and LR voice, fearing for the users' bill.

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Michel Barnier's final concession

In a final concession to avoid the fall of his government, Michel Barnier had renounced this increase on November 28, without however avoiding censure a few days later.

The decree published Saturday “concerns the end of the tariff shield that 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 for 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 drop in electricity prices should be, as announced by the Prime Minister on November 28, 14% in 2025”, it was added.

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 despite the end of the tariff shield.

Small and medium-sized enterprises subscribed to the TRV, whose excise duty will only be increased to 26.23 euros/MWh on February 1 according to the decree, will also benefit.

For heating gas, the excise duty rate increases to 17.16 euros/MWh for 2025 € per MWh compared to €16.37/MWh in 2024 and €8.37/MWh in 2023.