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

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.