Connection

popular articles

France records a 5.3% drop in GHG emissions in Q1 2024
Sinopec unveils global energy forecast to 2060 at event in Saudi Arabia
Orkla sells its hydropower portfolio for NOK 6.1 billion
TotalEnergies strengthens its global portfolio with three renewable acquisitions
EDF challenges Czech decision on nuclear contract awarded to KHNP

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.
  • [favorite_button]

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

Latest news

Boralex secures two 450 MW solar contracts in New York State
Europe commits €800bn to defence, destabilising strategic metals supply balance
Ivory Coast approves $60mn solar power plant in Katiola
Madrid and Lisbon ask Brussels to accelerate electrical interconnection projects
Greencells signs 68.48 MWp EPC contract with Enray in the United Kingdom

Recently published in

China surpasses 26% wind and solar electricity share in April, setting new record

In April, China generated 26% of its electricity from wind and solar, according to Ember, marking a historic first that reflects a rapid rebalancing of its energy mix.
Belgium legalises extension of two nuclear reactors until 2045
Belgium’s federal parliament has adopted a law authorising the extension of Doel-4 and Tihange-3 reactors and allowing new nuclear construction, ending the nuclear phase-out policy established in 2003.
en_1140290956540-11
Belgium legalises extension of two nuclear reactors until 2045
Belgium’s federal parliament has adopted a law authorising the extension of Doel-4 and Tihange-3 reactors and allowing new nuclear construction, ending the nuclear phase-out policy established in 2003.
en_1140290956540-11
Australia commits AUD 22.7bn to support its energy policy through 2030
The re-elected Australian government is investing heavily in storage, critical minerals and domestic production to meet its target of 82% renewable electricity by 2030.
en_1140290972540-3
Australia commits AUD 22.7bn to support its energy policy through 2030
The re-elected Australian government is investing heavily in storage, critical minerals and domestic production to meet its target of 82% renewable electricity by 2030.
en_1140290972540-3
US budget proposal threatens tax incentives for renewable energy projects
The US House budget bill outlines a gradual phaseout of tax credits, affecting financing for solar, wind, storage, and clean hydrogen initiatives.
en_1140290975540-2
US budget proposal threatens tax incentives for renewable energy projects
The US House budget bill outlines a gradual phaseout of tax credits, affecting financing for solar, wind, storage, and clean hydrogen initiatives.
en_1140290975540-2

China slows fossil fuel output in April despite higher year-on-year volumes

China's gas, oil and coal volumes remain above last year’s levels, despite a decline in April compared to the record highs of March.
Regulator Ofgem forecasts 7% drop in energy bills from July
The UK’s energy price cap is expected to fall to £1,720 ($2,187) in July, according to Cornwall Insight, due to recent movements in wholesale markets.
en_1140290978540-3
Regulator Ofgem forecasts 7% drop in energy bills from July
The UK’s energy price cap is expected to fall to £1,720 ($2,187) in July, according to Cornwall Insight, due to recent movements in wholesale markets.
en_1140290978540-3
European Union cuts Russian gas imports by 98 bcm since 2021
The European Commission releases data on the REPowerEU plan, confirming a sharp drop in Russian fossil fuel purchases and announcing new legislative measures by June.
en_1140291001540
European Union cuts Russian gas imports by 98 bcm since 2021
The European Commission releases data on the REPowerEU plan, confirming a sharp drop in Russian fossil fuel purchases and announcing new legislative measures by June.
en_1140291001540
India signs $500,000 agreement to support clean energy startups
A partnership between the Indian government and GEAPP provides financial and operational support to early-stage climate-tech firms as part of a national energy strategy.
en_1140291012540
India signs $500,000 agreement to support clean energy startups
A partnership between the Indian government and GEAPP provides financial and operational support to early-stage climate-tech firms as part of a national energy strategy.
en_1140291012540

Uzbekistan accelerates energy modernisation with $100mn World Bank loan

A $150mn financing package, including $100mn from the World Bank, will support the modernisation of Uzbekistan’s power grid and integration of renewable energy in key regions.
Canada aims to mobilise $1.1tn through major energy projects by 2035
A report from the Public Policy Forum calls for accelerating over 500 energy, critical minerals and infrastructure projects to generate CAD1 100bn in Canadian GDP growth.
en_1140290950540-9
Canada aims to mobilise $1.1tn through major energy projects by 2035
A report from the Public Policy Forum calls for accelerating over 500 energy, critical minerals and infrastructure projects to generate CAD1 100bn in Canadian GDP growth.
en_1140290950540-9
Quebec modernises gas regulations and integrates industrial hydrogen
Quebec opens public consultation on draft regulations to revise gas standards and frame the integration of hydrogen, with feedback expected by 27 June.
en_1140290952540-9
Quebec modernises gas regulations and integrates industrial hydrogen
Quebec opens public consultation on draft regulations to revise gas standards and frame the integration of hydrogen, with feedback expected by 27 June.
en_1140290952540-9
Denmark considers lifting 40-year nuclear ban
The Danish government is assessing the possibility of authorising new nuclear technologies, marking a major regulatory shift in energy policy after four decades of prohibition.
en_1140290949540-8
Denmark considers lifting 40-year nuclear ban
The Danish government is assessing the possibility of authorising new nuclear technologies, marking a major regulatory shift in energy policy after four decades of prohibition.
en_1140290949540-8

No cyberattack detected after massive power outage in Spain

The Spanish government confirmed no signs of cyberattack were identified after the 28 April blackout that affected much of the Iberian Peninsula.
South Africa calls for a balanced and affordable energy transition
South African authorities are advocating for an approach that integrates economic development and environmental protection, highlighting global imbalances in climate responsibility.
en_1140290954540-6
South Africa calls for a balanced and affordable energy transition
South African authorities are advocating for an approach that integrates economic development and environmental protection, highlighting global imbalances in climate responsibility.
en_1140290954540-6
Brussels wants to impose a six-month maximum for energy permits
The European Commission is considering changing environmental laws to accelerate the granting of permits for renewable energy projects across the European Union.
en_1140290953540-7
Brussels wants to impose a six-month maximum for energy permits
The European Commission is considering changing environmental laws to accelerate the granting of permits for renewable energy projects across the European Union.
en_1140290953540-7
Spain investigates blackout that removed 15 GW in five seconds
Spain’s competition authority has launched its own investigation into the April 28 power outage, joining ongoing inquiries into an incident that disrupted 60% of the country's electricity consumption.
en_1140290950540-7
Spain investigates blackout that removed 15 GW in five seconds
Spain’s competition authority has launched its own investigation into the April 28 power outage, joining ongoing inquiries into an incident that disrupted 60% of the country's electricity consumption.
en_1140290950540-7

Germany considers making producers contribute to electricity grid costs

German regulator BNetzA has launched a consultation on a major grid tariff reform that could require electricity producers to pay access fees, thus altering the current funding structure.
United States signs historic agreement for helium-3 extracted from the Moon
The U.S. Department of Energy will purchase three litres of helium-3 from Interlune by 2029, marking the first public contract involving a natural resource extracted from the lunar surface.
en_1140290945540-3
United States signs historic agreement for helium-3 extracted from the Moon
The U.S. Department of Energy will purchase three litres of helium-3 from Interlune by 2029, marking the first public contract involving a natural resource extracted from the lunar surface.
en_1140290945540-3
Iran caps electricity outages at two hours amid rising summer demand
Iran will limit daily power cuts to two hours for households starting May 10, aiming to ease pressure on the national electricity grid as temperatures climb.
en_1140290944540-3
Iran caps electricity outages at two hours amid rising summer demand
Iran will limit daily power cuts to two hours for households starting May 10, aiming to ease pressure on the national electricity grid as temperatures climb.
en_1140290944540-3
Bernard Fontana appointed to lead EDF and manage major energy projects
The French government has entrusted Bernard Fontana with the leadership of EDF, relying on his industrial background to manage the end of the Arenh and revive the nuclear programme.
en_1140290948540-3
Bernard Fontana appointed to lead EDF and manage major energy projects
The French government has entrusted Bernard Fontana with the leadership of EDF, relying on his industrial background to manage the end of the Arenh and revive the nuclear programme.
en_1140290948540-3

Pedro Sánchez delays conclusions after blackout cuts 60% of Spain’s power

The Spanish Prime Minister has asked for more time to determine the causes of an unprecedented outage on April 28 that cut 15 gigawatts of electricity from the peninsula’s grid.
Bayrou promises an open energy roadmap ahead of decree publication
Prime Minister François Bayrou confirmed that France’s 2025–2035 energy roadmap remains under discussion and will only be finalised after parliamentary debates starting on 16 June.
en_1140290946540-2
Bayrou promises an open energy roadmap ahead of decree publication
Prime Minister François Bayrou confirmed that France’s 2025–2035 energy roadmap remains under discussion and will only be finalised after parliamentary debates starting on 16 June.
en_1140290946540-2
Australia’s political stability paves the way for key energy reforms
The re-election of the Albanese government reassures energy stakeholders calling for regulatory adjustments to accelerate projects and secure long-term investment.
en_1140290943540
Australia’s political stability paves the way for key energy reforms
The re-election of the Albanese government reassures energy stakeholders calling for regulatory adjustments to accelerate projects and secure long-term investment.
en_1140290943540
Gabon launches $69.5 million plan to triple refining capacity
SOGARA is launching a two-phase modernisation programme to increase the country's energy autonomy by 2030, with financing primarily from external sources.
en_1140290976540-2
Gabon launches $69.5 million plan to triple refining capacity
SOGARA is launching a two-phase modernisation programme to increase the country's energy autonomy by 2030, with financing primarily from external sources.
en_1140290976540-2

Advertising

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

VERVANT

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS