Electricity bills: French government announces 2.5% rise for regulated bills
Over 19 million households impacted, with the average bill rising €26 per year
A 2.5% increase to regulated electricity tariffs will come into force from August 1, the government announced on Thursday (July 16).
The average regulated electricity tariff will increase by around €26 per year due to the changes.
The increase to the regulated tariffs – affecting more than 19 million households in France in March 2026 – was recommended by the Commission de régulation de l’énergie (CRE) earlier in the day.
The CRE said in its report that the increase should be implemented due to increases in the network usage charge (tarif d'utilisation des réseaux publics de distribution d'électricité, TURPE).
These charges will increase by around 3% on August 1, and account for roughly a third of the total cost of regulated tariff costs. Paid by the supplier, they are passed onto the billpayer.
It also cited new capacity mechanisms and a small reduction in excise duties on households with a regulated tariff and a power of 36 kVA (the largest possible for non-businesses) following a public consultation in May 2026.
The CRE originally estimated that August’s bill increase would be around 1% ‘if all other things remain equal’, before updating its final advice.
The government also said the increase is required for “investment in maintaining generation capacity for the winter season and… the upkeep of our public electricity grids,” when it announced the increase.
“The importance of [keeping grids connected] became clear to everyone during periods of extreme heat,” it added.
France’s electrical grid has been under pressure for several weeks due to successive heatwaves and the resulting spike in electricity usage as households use fans, air conditioning units etc to cool down.
An investment drive to install 30,000 air conditioning units across hospitals will also increase future consumption.
Electricity market modernises
The increase comes as France’s energy sector undergoes a number of trials and changes to adapt to new conditions.
State electricity supplier EDF is trialling new peak/off-peak electricity contracts based on the rhythm of annual electricity production, focusing on periods of excess electricity production from solar panels and wind turbines.
More generally, many suppliers are now looking to alter peak and off-peak hours in contracts in light of changing consumption habits, such as working from home and charging electric vehicles.
Some ‘super off-peak’ contracts provide additional tiers of where the cost of electricity is reduced further.
At the start of 2026, EDF ended its nuclear-related price controls (ARENH), which required it to sell a certain portion of its nuclear energy to certain industries and suppliers at a fixed rate.
The ability for EDF to sell the energy freely (although within certain market limits) raised fears that bill increases would compensate for price fluctuations.
In 2025 the government said regulated tariffs “should remain stable at least through 2026 and 2027,” for three-quarters of such contract holders, although this has not been the case.
Further increases due to the end of the ARENH mechanism are possible.
