popular articles

France: a clause to adjust electricity tax based on market fluctuations

The French government proposes a "rendezvous clause" to adjust the electricity tax increase, ensuring a 9% decrease in regulated electricity bills for the majority of households by February 2025.

Please share:

The French government has announced a measure to adjust electricity taxes based on fluctuations in wholesale electricity prices. During a statement in the National Assembly, Michel Barnier supported the idea of a “rendezvous clause” to revise this tax, aiming to guarantee effective reductions in consumer bills.

Adjustment based on wholesale prices

The Prime Minister stated that this proposal is part of the 2025 budget project, which aims to collect €3 billion through an increase in electricity tax. These funds will contribute to reducing the public deficit while keeping the promise of a 9% reduction in bills for 80% of French households by February 2025.

The initiative seeks a gradual return to pre-crisis electricity tariffs. In response to criticism, the government introduced this adjustment clause to adapt the tax to evolving market prices. This flexibility also addresses concerns from political opponents who had rejected the initial version of the law due to potential negative impacts on consumers and a perceived lack of parliamentary oversight.

Balancing public finances and household support

The electricity excise tax will be readjusted to align with pre-existing conditions before the tariff shield was introduced. Olga Givernet, Minister Delegate for Energy, stated that this variability would ensure that taxes are aligned with wholesale price trends.

Subscribers to regulated tariffs or indexed contracts, representing 76% of French households according to the Commission for Energy Regulation (CRE), will be the main beneficiaries of this measure. The government aims to balance consumer support with securing necessary fiscal revenues for the state budget.

A measure under scrutiny

Despite this proposal, doubts persist. Several opposition parties have expressed skepticism about the effectiveness of the rendezvous clause to limit tax increases. They fear limited effects if wholesale prices rise sharply.

The government must demonstrate that this strategy is viable and offers a sustainable solution to protect households while contributing to fiscal recovery. The success of this adjustment relies on careful price management and clear communication with stakeholders.

Register free of charge for uninterrupted access.

Publicite

Recently published in

At COP29 in Baku, the United Kingdom unveiled an ambitious plan to cut greenhouse gas emissions by 81% by 2035, asserting its leading role in global climate diplomacy.
Thai authorities have dismantled nine illegal Bitcoin mining farms accused of stealing over €270,000 worth of electricity. Two suspects have been arrested for large-scale energy fraud.
Thai authorities have dismantled nine illegal Bitcoin mining farms accused of stealing over €270,000 worth of electricity. Two suspects have been arrested for large-scale energy fraud.
On the eve of a possible Trump presidency, the United States seeks to reassure its partners on its climate commitment at COP29, amidst North-South tensions and a debate on financial aid for developing countries.
On the eve of a possible Trump presidency, the United States seeks to reassure its partners on its climate commitment at COP29, amidst North-South tensions and a debate on financial aid for developing countries.
Two environmental NGOs are challenging in Scottish court the authorization to drill in the Rosebank and Jackdaw oil and gas fields in the North Sea, denouncing their impact on the UK's climate objectives.
Two environmental NGOs are challenging in Scottish court the authorization to drill in the Rosebank and Jackdaw oil and gas fields in the North Sea, denouncing their impact on the UK's climate objectives.
The German energy sector urges the government to pass key reforms before the planned dissolution of parliament in January, fearing prolonged gridlock following the coalition's collapse.
The White House completes its oil purchasing program to replenish strategic reserves, marking the end of a controversial initiative aimed at strengthening energy security after massive releases in 2022.
The White House completes its oil purchasing program to replenish strategic reserves, marking the end of a controversial initiative aimed at strengthening energy security after massive releases in 2022.
As a contender to host COP31, Australia is pushing for ambitious climate commitments at COP29 in Azerbaijan, while promoting green hydrogen initiatives for Asian markets.
As a contender to host COP31, Australia is pushing for ambitious climate commitments at COP29 in Azerbaijan, while promoting green hydrogen initiatives for Asian markets.
France: uncertainties surrounding the future Nuclear Safety Authority scheduled for January
France: uncertainties surrounding the future Nuclear Safety Authority scheduled for January
China has ratified an ambitious legislation aimed at promoting carbon neutrality and framing sustainable energy development in response to growing climate challenges.
Brazil has increased its greenhouse gas reduction target from 59% to 67% by 2035 as part of its commitment to the Paris Agreement.
Brazil has increased its greenhouse gas reduction target from 59% to 67% by 2035 as part of its commitment to the Paris Agreement.
In response to a fuel shortage threatening the power plants, Iran has announced electricity rationing in Tehran and several provinces. The duration of this measure remains unknown.
In response to a fuel shortage threatening the power plants, Iran has announced electricity rationing in Tehran and several provinces. The duration of this measure remains unknown.
Voters in Washington rejected Initiative 2117, ensuring the continuation of the carbon market established in 2021. This decision could drive up carbon allowance prices.
Voters in Washington rejected Initiative 2117, ensuring the continuation of the carbon market established in 2021. This decision could drive up carbon allowance prices.
Donald Trump's election in the United States, with his open climate skepticism, could reverse American environmental commitments, jeopardizing global climate goals and increasing greenhouse gas emissions.
Just days before COP29, the International Energy Agency (IEA) sounds the alarm: progress in energy efficiency remains well below the goals set in 2023, jeopardizing the reduction of fossil fuel usage.
Just days before COP29, the International Energy Agency (IEA) sounds the alarm: progress in energy efficiency remains well below the goals set in 2023, jeopardizing the reduction of fossil fuel usage.
The recent U.S. elections could reshape energy policies, influencing global markets, trade relations, and climate commitments. The opposing candidates’ positions, between protecting fossil industries and promoting clean energy, outline divergent prospects.
The recent U.S. elections could reshape energy policies, influencing global markets, trade relations, and climate commitments. The opposing candidates’ positions, between protecting fossil industries and promoting clean energy, outline divergent prospects.
A new report from the International Energy Agency reveals that Namibia could boost its socioeconomic development by capitalizing on its renewable resources, provided effective support policies are implemented.
A new report from the International Energy Agency reveals that Namibia could boost its socioeconomic development by capitalizing on its renewable resources, provided effective support policies are implemented.
Amid concerns over potential job cuts, approximately 10% of GRDF employees mobilized in response to a call from the CGT, denouncing a plan to reduce payroll, affecting thousands of jobs.
The French operator RTE is investing nearly one billion euros to acquire 5,000 km of underground cables from five European cable suppliers to modernize and strengthen its high-voltage electricity network.
The French operator RTE is investing nearly one billion euros to acquire 5,000 km of underground cables from five European cable suppliers to modernize and strengthen its high-voltage electricity network.
The German government, in agreement with Paris, has expressed openness to a revision of European sanctions targeting automakers in 2025, aiming to support an industry struggling with Chinese competition and high energy costs.
The German government, in agreement with Paris, has expressed openness to a revision of European sanctions targeting automakers in 2025, aiming to support an industry struggling with Chinese competition and high energy costs.
The Indian group Adani has halved the electricity supplied to Bangladesh due to $850 million in unpaid bills. This reduction in energy flow places the country in a position where it must quickly address a shortfall.
The Indian group Adani has halved the electricity supplied to Bangladesh due to $850 million in unpaid bills. This reduction in energy flow places the country in a position where it must quickly address a shortfall.
As COP29 approaches in Azerbaijan, tensions emerge as climate ambitions clash with economic realities, and vulnerable nations express growing impatience.
Canada commits to a 35% reduction in emissions from its energy sector by 2030, imposing constraints on a key economic industry. This project brings both hopes and concerns among provinces and companies.
Canada commits to a 35% reduction in emissions from its energy sector by 2030, imposing constraints on a key economic industry. This project brings both hopes and concerns among provinces and companies.
Facing a severe fuel shortage due to a lack of foreign currency, Malawi has implemented rationing measures, raising fears over food security and the stability of the agricultural and economic sectors.
Facing a severe fuel shortage due to a lack of foreign currency, Malawi has implemented rationing measures, raising fears over food security and the stability of the agricultural and economic sectors.
With the tightening of European CO2 emissions standards, car manufacturers must reduce their emissions or face massive penalties. A significant challenge that could reshape the industrial landscape in Europe.
With the tightening of European CO2 emissions standards, car manufacturers must reduce their emissions or face massive penalties. A significant challenge that could reshape the industrial landscape in Europe.

Advertising