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.

Partagez:

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.

  • Populaires ​
Algeria and Angola strengthen energy cooperation at US–Africa summit
Plenitude and Modine launch 1.585 MWp solar power plant in Italy
China and the United States improve their energy performance in an unstable global context
Renewable energy: access improving, but financing still insufficient for Africa
Voluntary carbon market attracts $3 billion to industrial biomass sector
South Korea reduces its dependence on fossil fuels below 50%
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
US Senate adopts tax neutrality for advanced biofuels
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
UK urged to accelerate electricity price reforms
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
Brussels expands subsidies for low-carbon technologies and nuclear power
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan Faces Major Electricity Shortfall of 89 GW by 2050
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
EU Approves Targeted Energy Aid for Europe’s Heavy Industries
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius launches international tender for floating power plant
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Spain and Portugal Strengthen Networks Following April Blackout
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia Commits 190 Billion USD to Expand Energy Capacity by 2034
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
France: Moratorium on renewables; warning about immediate industrial impact
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
New European Battery Regulation Disrupts Europe’s Industrial Sector
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
European Parliament urges Brussels to act on energy grids
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.
Europe Commits Major Investments to Electricity Grids and the Clean Industrial Deal
The European Commission unveils an ambitious plan to modernize electricity grids and introduces the Clean Industrial Deal, mobilizing hundreds of billions of euros to strengthen the continent's industrial and energy autonomy.
Wood Mackenzie highlights advantage of regulated utilities amid data centre boom
In the United States, regulated electric grid operators hold a decisive advantage in connecting new data centres to the grid, now representing 134 GW of projects, according to a Wood Mackenzie report published on June 19.
France sets renewable energy target of 200 TWh by 2030
The French National Assembly approves a specific target of 200 TWh renewable electricity production by 2030 within a legislative text extensively debated about the future national energy mix.
United States: emissions stagnate in 2024, uncertainty under Trump administration
In 2024, US CO₂ emissions remain stable at 5.1bn tonnes, as the Trump administration prepares hydrocarbon-friendly energy policies, raising questions about the future evolution of the American market.
France: Anticipated Energy Decree, National Assembly Denounces Democratic Risk
The early publication of France's energy decree triggers strong parliamentary reactions, as the government aims to rapidly secure investments in nuclear and other energy sectors.
Spain Blackout: Analysis of Causes and European Financing Plan Approved
Seven weeks after the major Iberian power outage, Spain identifies technical network failures, while the European Investment Bank approves major funding to strengthen the interconnection with France.
European Union Sets Precise Timeline for Russian Gas Import Ban
The European Union has announced a detailed schedule aiming to definitively halt Russian gas imports by the end of 2027, anticipating internal legal and commercial challenges to overcome.
Madagascar invests in thermal power plant to counter chronic power cuts
Madagascar plans the imminent opening of a 105 MW thermal power plant to swiftly stabilise its electricity grid, severely affected in major urban areas, while simultaneously developing renewable energy projects.

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS