Overview

• The regulated electricity tariff in France will decrease by 14% starting February 1, 2025, benefiting 22.4 million households and businesses.
• This marks the first significant price reduction since 2018, following years of steep increases totaling nearly 45% over two years.
• The decrease is attributed to a sharp drop in international electricity market prices and improved domestic production, including nuclear and hydropower.
• The government had initially planned a higher tax increase that would have limited the price drop to 9%, but this was abandoned following political opposition and public pressure.
• The price reduction will occur despite the end of the electricity price shield, with taxes returning to pre-crisis levels but without additional increases.