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

Nigeria aims to increase its electricity production capacity by 4,000 MW by 2026 to meet the growing demand of the industrial sector, in a context of reforms and partnerships with international players.
EDF’s outgoing CEO, Luc Rémont, claims French electricity will be more competitive than that of the United States, despite ongoing criticisms from industrialists about high tariffs.
EDF’s outgoing CEO, Luc Rémont, claims French electricity will be more competitive than that of the United States, despite ongoing criticisms from industrialists about high tariffs.
Donald Trump's aggressive trade policies and regulatory uncertainty in the United States are slowing investments in wind, solar, and energy storage, pushing the sector into a period of caution and market volatility.
Donald Trump's aggressive trade policies and regulatory uncertainty in the United States are slowing investments in wind, solar, and energy storage, pushing the sector into a period of caution and market volatility.
The French government activates five funding mechanisms to support industrial decarbonisation projects through the France 2030 plan, targeting major sites, SMEs and high-emission industrial zones.
The French government activates five funding mechanisms to support industrial decarbonisation projects through the France 2030 plan, targeting major sites, SMEs and high-emission industrial zones.
Paris releases a new €400mn funding package to support industrial projects aimed at reducing emissions under the France 2030 programme.
The massive withdrawal of American financial support and the reduction of European aid could jeopardize energy projects in Africa, profoundly altering their financing structure and the continent's commitments.
The massive withdrawal of American financial support and the reduction of European aid could jeopardize energy projects in Africa, profoundly altering their financing structure and the continent's commitments.
The Vietnamese government has raised its renewable energy targets in a new version of its national energy plan, responding to continued growth in electricity demand.
The Vietnamese government has raised its renewable energy targets in a new version of its national energy plan, responding to continued growth in electricity demand.
A massive outage plunged Puerto Rico into darkness on Wednesday, leaving approximately 1.1 million households without electricity after an unexpected shutdown of all its power plants.
A massive outage plunged Puerto Rico into darkness on Wednesday, leaving approximately 1.1 million households without electricity after an unexpected shutdown of all its power plants.
The Czech Republic has ended its dependency on Russian oil after more than six decades, a major shift made in response to Russia's invasion of Ukraine.
The European power purchase agreement (PPA) market for renewables reached 19 GW of new capacity in 2024, with growing momentum for hybrid contracts including storage.
The European power purchase agreement (PPA) market for renewables reached 19 GW of new capacity in 2024, with growing momentum for hybrid contracts including storage.
Industry Minister Marc Ferracci criticised the Rassemblement National's stance on energy, accusing it of hindering planned investments in renewables in favour of fossil fuel imports.
Industry Minister Marc Ferracci criticised the Rassemblement National's stance on energy, accusing it of hindering planned investments in renewables in favour of fossil fuel imports.
Bill 69 sparks protests in Saint-Jean-sur-Richelieu, where several organisations denounce a risk of privatising Quebec’s electricity sector.
Bill 69 sparks protests in Saint-Jean-sur-Richelieu, where several organisations denounce a risk of privatising Quebec’s electricity sector.
Wind and solar energy accounted for nearly one-fifth of Türkiye’s electricity generation in 2024, according to an analysis by think tank Ember, driven by a strong increase in installed capacity.
The Acerez consortium has signed a 35-year agreement to build and operate over 240 km of high-voltage lines in Australia, marking the country's first public-private partnership in the sector.
The Acerez consortium has signed a 35-year agreement to build and operate over 240 km of high-voltage lines in Australia, marking the country's first public-private partnership in the sector.
France’s multi-year energy strategy shifts focus away from photovoltaics toward flexibility measures, including battery storage, to address growing imbalances in the electricity market.
France’s multi-year energy strategy shifts focus away from photovoltaics toward flexibility measures, including battery storage, to address growing imbalances in the electricity market.
France’s energy regulator unveils its first observatory dedicated to renewable electricity purchase agreements, highlighting a recent but still marginal growth compared to State-backed mechanisms.
France’s energy regulator unveils its first observatory dedicated to renewable electricity purchase agreements, highlighting a recent but still marginal growth compared to State-backed mechanisms.
The French government plans to adopt within two weeks a decree outlining the decade’s energy objectives, restarting nuclear power and preparing for a parliamentary debate on energy sovereignty.
The expansion of solar and wind capacity is multiplying hours of negative prices on European electricity markets, weakening the sector's economic balance while reshaping export and storage dynamics.
The expansion of solar and wind capacity is multiplying hours of negative prices on European electricity markets, weakening the sector's economic balance while reshaping export and storage dynamics.
The National Assembly will discuss national energy security on 28 April at the government’s request, in connection with the upcoming Multiannual Energy Programming covering the 2025-2035 period.
The National Assembly will discuss national energy security on 28 April at the government’s request, in connection with the upcoming Multiannual Energy Programming covering the 2025-2035 period.
Despite a predominantly decarbonised electricity production, demand in Europe remains subdued, hindered by uncompetitive prices and limited industrial usage.
Despite a predominantly decarbonised electricity production, demand in Europe remains subdued, hindered by uncompetitive prices and limited industrial usage.
The global electricity mix shifted in 2024 with 40.9% of production from low-carbon sources, according to Ember, driven by historic solar power growth.
Facing recurring shortages, Tajikistan tightens energy laws by introducing prison sentences of up to ten years for electricity fraud to protect its ageing hydropower network.
Facing recurring shortages, Tajikistan tightens energy laws by introducing prison sentences of up to ten years for electricity fraud to protect its ageing hydropower network.
The French government finalises its new energy roadmap through 2035, balancing nuclear revival and selective expansion of renewables amid political tensions.
The French government finalises its new energy roadmap through 2035, balancing nuclear revival and selective expansion of renewables amid political tensions.
Burundi’s main opposition coalition warns of direct consequences from the energy crisis on the organisation of the June legislative elections.
Burundi’s main opposition coalition warns of direct consequences from the energy crisis on the organisation of the June legislative elections.

Advertising