The president of the Commission de régulation de l’Energie (CRE), Emmanuelle Wargon, has expressed reservations about a potential significant increase in the Taxe intérieure de consommation finale sur l’électricité (TICFE). This tax, which directly impacts consumers, is at the heart of government discussions aimed at increasing tax revenues in a tight economic context.
The French government plans to raise the TICFE more than initially planned, a decision motivated by the need to stabilize public finances. However, this increase raises concerns about its impact on household electricity bills and the country’s climate objectives. According to Ms. Wargon, it is crucial to maintain a balance between the need for tax revenues and the affordability of electricity for citizens.
Economic and Social Implications
The increase in TICFE could lead to higher costs for consumers, particularly affecting low-income households. This measure could also influence the competitiveness of businesses by increasing energy costs for industries reliant on electricity. Ms. Wargon emphasizes that any tax increase must be accompanied by support mechanisms to mitigate these negative effects.
Furthermore, energy taxation plays a key role in the transition to more sustainable energy sources. An increase in TICFE without thorough consideration of its use could hinder investments in renewable energy. Ms. Wargon points out that the affordability of electricity is essential to encourage responsible consumption and support the country’s ecological initiatives.
Climate Objectives and Energy Transition
The French government has clearly stated that energy taxation must support the country’s climate objectives. By increasing TICFE, the state aims to reduce dependence on fossil fuels and promote the use of cleaner energy sources. However, Ms. Wargon warns against too rapid an increase, which could compromise these objectives by making electricity less accessible and slowing the energy transition.
The energy transition requires a balanced approach, where fiscal policies support both the reduction of carbon emissions and economic accessibility. Ms. Wargon calls for thorough reflection to ensure that tax increases do not undermine efforts to promote greener and more sustainable energy.
Government Reactions and Future Perspectives
The previous government had initiated the gradual end of the tariff shield, a measure designed to limit the impact of high electricity prices on consumers. This policy has already led to an increase in TICFE from 1 to 21 euros per megawatt-hour (MWh) in February, with the intention to raise this tax to 32.44 euros per MWh in February 2025. This increase aims to restore the taxation level to its pre-energy crisis state, thereby allowing the state to recover approximately 5 billion euros.
However, according to information reported by Le Parisien, the Ministry of Finance is considering exceeding this threshold of 32.44 euros per MWh, creating uncertainty regarding the expected reduction in bills in February. The Minister of Ecological Transition and Energy, Agnès Pannier-Runacher, also expressed her concerns, highlighting the risk of an increase in electricity prices if TICFE is raised beyond current forecasts.
Perspectives and Outlook
As the debate on increasing TICFE continues, it is essential to find a balance between the state’s fiscal needs and social and climate imperatives. The vigilance expressed by Emmanuelle Wargon reflects the complexity of issues related to energy taxation, where each decision must be carefully weighed to avoid negative economic and environmental consequences.
