Good news as lower electricity bills confirmed in France

Electricity bills are set to lower by 5% in France from February, the economy minister has confirmed, with a collective saving of €540 million per year.

In real terms, the savings will amount to around €10-12 per domestic household per year, and up to €200 per year for a small business, such as a bakery.

Roland Lescure made the announcement in an interview with Le Parisien on January 4, stating: “I have decided to reduce the contribution tarifaire d’approvisionnement (CTA, supply tariff contribution), which is a levy on all French electricity bills.”

The change is set to come into force from February 1, and is an improvement on the forecast for unchanging prices predicted late last year.

Mr Lescure conceded that the change was not “a revolution in energy pricing”, but warned that there is “no magic formula” when it comes to reducing energy bills. “We are going to give back €540 million in purchasing power to the French people,” he said. “[Once implemented] it is effective, immediate, and significant."

The reduction is expected to be confirmed in the Journal Officiel after passing consultation with authorities including the Conseil supérieur de l’énergie (CSE) and the Commission de régulation de l’énergie (CRE).

No public finance impact

Mr Lescure purposefully chose this method of reducing bills because the change will not affect government spending or public finances, he added.

The CTA does not contribute to the public budget, but instead finances pension schemes for employees in the electricity and gas sectors. Currently, these pension schemes are running at a surplus, and so will not be negatively impacted by the reduction.

Mr Lescure was tasked with bringing electricity bills down by Prime Minister Sébastien Lecornu in November. Other options reportedly considered included reducing excise duties on electricity, or lowering the current 20% VAT rate.

The reduction follows a 15% drop in prices announced last year (in January 2025).