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SEE: Most French electricity bills to rise by 9.8% in February
The price hike is due to the reintroduction of tax that was suspended in 2022
Electricity bills are set to rise by 9.8% from February 1 as the government reintroduces a tax that was suspended from 2022 due to the energy crisis.
The forecasts for the increase in the state regulated tariff for February 2024 were initially pessimistic with the French energy watchdog La Commission de régulation de l’énergie (CRE) anticipating rises of between 10 and 20%.
However, it announced on January 10 that the regulated tariff itself would not increase, but that a key tax associated with electricity would return, bringing prices up.
Read more: Electricity tariffs stabilise but bills may still rise in France
This tax, called the Taxe intérieure de consommation finale sur l’électricité (TICFE) was suspended in 2022 as part of the price shield, which saw it fall from €32 per megawatt hour (MWh) to €1.
The measure essentially subsidised the electricity price for people in France, at the cost of the national debt, which now stands at over €3,000billion.
Speaking on TF1 on January 21, Minister of the Economy Bruno Le Maire confirmed that the price rise for most households would be less than in previous years, despite the return of the TICFE.
“For 97% of households, the rise will be less than 10%,” he said, adding that a return of the tax was necessary to help reduce France’s deficit.
The 9.8% rise is less than was feared, and less than the 15% rise in February 2023, but still likely to cost the average household an additional €127 a year on their electricity bill.
The increase will be slightly lower, at 8.6%, for basic contracts that use a 24h rate rather than a peak/off peak rate.
How much has the price of electricity risen in recent years?
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