France: Agnès Pannier-Runacher warns of the risks of excessive increases in electricity taxes

France: Agnès Pannier-Runacher warns of the risks of excessive increases in electricity taxes

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

The Minister for Ecological Transition and Energy, Agnès Pannier-Runacher, warned against the consequences of an excessive increase in the electricity tax. Speaking this Sunday on France 3, she emphasized that such an increase could disproportionately impact low-income households and businesses, particularly those who do not benefit from regulated tariffs.

The recent drop in energy prices on the international market would allow this tax to return to its pre-crisis level, namely 32 euros per megawatt-hour (MWh) compared to 22 euros currently. “If the tax returns to its pre-crisis level, as prices have returned to a normal level, the price that the French pay will decrease. However, we must not go beyond that,” Agnès Pannier-Runacher specified.

Risk for households and businesses

Any additional increase could, according to the Minister, heavily weigh on the bills of households living in poorly insulated homes, referred to as “thermal sieves,” which would primarily affect low and middle-income classes. In parallel, businesses could also face increased pressure on their operating costs, affecting various sectors such as bakers, already sensitive to changes in energy charges.

Expected reduction for consumers on regulated tariffs

Last September, the Commission de régulation de l’énergie (CRE) announced that the end of the tariff shield next February should result in at least a 10% reduction in electricity bills for households on regulated tariffs. However, the Minister warned that if the electricity tax were adjusted beyond its pre-crisis level, the expected savings for consumers could be compromised.

Ongoing arbitration in Parliament

Arbitrations are currently in discussion, and the final decision will be made by Parliament during the examination of the finance bill next week. “We must be very vigilant because low-income and middle-class French people will face a double penalty. They are often the ones living in thermal sieves,” emphasized Agnès Pannier-Runacher.

In conclusion, the Minister insisted on the necessity of a balanced approach to avoid burdening households and businesses while maintaining tariff stability.

Re-elected president Irfaan Ali announces stricter production-sharing agreements to increase national economic returns.
Coal India issues tenders to develop 5 GW of renewable capacity, split between solar and wind, as part of its long-term energy strategy.
US utilities anticipate a rapid increase in high-intensity loads, targeting 147 GW of new capacity by 2035, with a strategic shift toward deregulated markets.
France opens a national consultation on RTE’s plan to invest €100 billion by 2040 to modernise the high-voltage electricity transmission grid.
Governor Gavin Newsom orders state agencies to fast-track clean energy projects to capture Inflation Reduction Act credits before deadlines expire.
Germany’s energy transition could cost up to €5.4tn ($6.3tn) by 2049, according to the main industry organisation, raising concerns over national competitiveness.
Facing blackouts imposed by the authorities, small businesses in Iran record mounting losses amid drought, fuel shortages and pressure on the national power grid.
Russian group T Plus plans to stabilise its electricity output at 57.6 TWh in 2025, despite a decline recorded in the first half of the year, according to Chief Executive Officer Pavel Snikkars.
In France, the Commission de régulation de l’énergie issues a clarification on ten statements shared over the summer, correcting several figures regarding tariffs, production and investments in the electricity sector.
A group of 85 researchers challenges the scientific validity of the climate report released by the US Department of Energy, citing partial methods and the absence of independent peer review.
Five energy infrastructure projects have been added to the list of cross-border renewable projects, making them eligible for financial support under the CEF Energy programme.
The Tanzanian government launches a national consultation to accelerate the rollout of compressed natural gas, mobilising public and private financing to secure energy supply and lower fuel costs.
The Kuwaiti government has invited three international consortia to submit bids for the first phase of the Al Khairan project, combining power generation and desalination.
Nigeria’s state-owned oil company abandons plans to sell the Port Harcourt refinery and confirms a maintenance programme despite high operating costs.
The publication of the Multiannual Energy Programme decree, awaited for two years, is compromised by internal political tensions, jeopardising strategic investments in nuclear and renewables.
The US Energy Information Administration reschedules or cancels several publications, affecting the availability of critical data for oil, gas and renewables markets.
Brazilian authorities have launched a large-scale operation targeting a money laundering system linked to the fuel sector, involving investment funds, fintechs, and more than 1,000 service stations across the country.
A national study by the Davies Group reveals widespread American support for the simultaneous development of both renewable and fossil energy sources, with strong approval for natural gas and solar energy.
The South Korean government compels ten petrochemical groups to cut up to 3.7 million tons of naphtha cracking per year, tying financial and tax support to swift and documented restructuring measures.
The U.S. Department of Energy has extended until November the emergency measures aimed at ensuring the stability of Puerto Rico’s power grid against overload risks and recurring outages.

Log in to read this article

You'll also have access to a selection of our best content.