French electricity producers warn of impact of new tax

Major players in the French electricity sector are warning of the potential consequences of a new tax on electricity production, which could significantly affect their investments and long-term strategies.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Major players in the French electricity sector are warning of the potential consequences of a new tax on electricity production, which could significantly affect their investments and long-term strategies.
The debate on the introduction of a tax on electricity producers is intensifying in France.
Companies in the sector, notably Électricité de France (EDF), are voicing their concerns about the financial and strategic repercussions this measure could have.
The proposed tax, known as the “contribution sur les rentes inframarginales” (Crim), would target generation facilities exceeding a certain capacity, including nuclear, hydro, wind and gas.
Generators point out that this tax could compromise their investment plans, particularly in the current context of energy transition.
Already subject to stringent regulations, they fear that additional tax burdens could hinder the development of new infrastructures essential to ensuring the country’s energy security.

Concerns of industry players

Energy companies believe that the introduction of this tax would reduce their competitiveness and their ability to finance large-scale projects.
They point out that investment in the electricity sector is crucial to modernizing the generating fleet and meeting today’s energy challenges.
Increased tax pressure could also deter investors and hinder international partnerships.
Furthermore, industry players warn that the tax could have an impact on consumers.
By increasing production costs, it could lead to higher electricity tariffs, affecting the French economy as a whole.
They therefore call for an in-depth examination of the economic and social consequences of this measure.

Political debate and future prospects

The French government sees this tax as a way of capturing some of the windfall profits made by electricity producers, particularly during price peaks on the energy markets.
However, the companies concerned are calling for consultation to assess the potential impact on the sector and on the energy transition.
Discussions are underway between industry representatives, public authorities and regulatory bodies.
Producers are proposing alternatives, such as greater investment in renewable energies and storage technologies, to contribute to the energy transition without compromising the sector’s economic viability.
Decisions taken in this context will have a major impact on the future of the French energy landscape.
It is essential to strike a balance between the State’s fiscal objectives and the need to maintain a robust, innovative energy sector capable of meeting the challenges of the future.

The Algerian government plans a full upgrade of the SCADA system, managed by Sonelgaz, to improve control and supervision of the national electricity grid starting in 2026.
Facing annual losses estimated at up to $66mn, SEEG is intensifying field inspections and preparing the rollout of smart meters to combat illegal connections.
The British government confirms its ambition to decarbonise the power sector by 2030, despite political criticism and concerns over consumer energy costs.
Enedis plans a €250mn ($264mn) investment to strengthen Marseille’s electricity grid by 2030, including the full removal of paper-insulated cables and support for the port’s electrification.
Energy ministers coordinate investment and traceability to curb China’s dominance in mineral refining and stabilize supply chains vital to electronics, defense, and energy under a common G7 framework.
Electricity demand, amplified by the rise of artificial intelligence, exceeds forecasts and makes the 2050 net-zero target unattainable, according to new projections by consulting firm Wood Mackenzie.
Norway's sovereign wealth fund generated a €88 billion profit in the third quarter, largely driven by equity market performances in commodities, telecommunications, and finance.
The German regulator is preparing a reform favourable to grid operators, aiming to adjust returns and efficiency rules from 2028 for gas pipelines and 2029 for electricity networks.
Bill Gates urges governments and investors to prioritise adaptation to warming effects, advocating for increased funding in health and development across vulnerable countries.
The Malaysian government plans to increase public investment in natural gas and solar energy to reduce coal dependency while ensuring energy cost stability for households and businesses.
The study by Özlem Onaran and Cem Oyvat highlights structural limits in public climate finance, underscoring the need for closer alignment with social and economic goals to strengthen the efficiency and resilience of public spending.
Oil major ExxonMobil is challenging two California laws requiring disclosure of greenhouse gas emissions and climate risks, arguing that the mandates violate freedom of speech.
The European Court of Human Rights ruled that Norway’s deferral of a climate impact assessment did not breach procedural safeguards under the Convention, upholding the country’s 2016 oil licensing decisions.
Singapore strengthens its energy strategy through public investments in nuclear, regional electricity interconnections and gas infrastructure to secure its long-term supply.
As oil production declines, Gabon is relying on regulatory reforms and large-scale investments to build a new growth framework focused on local transformation and industrialisation.
Cameroon will adopt a customs exemption on industrial equipment related to biofuels starting in 2026, as part of its new energy strategy aimed at regulating a still underdeveloped sector.
Facing a persistent fuel shortage and depleted foreign reserves, the Bolivian parliament has passed an exceptional law allowing private actors to import gasoline, diesel and LPG tax-free for three months.
Ghana aims to secure $16 billion in oil revenues over ten years, but the continued drop in production raises doubts about the sector’s long-term stability.
The government of Kinshasa has signed a memorandum of understanding with Vietnam's Vingroup to develop a 6,300-hectare urban project and modernise mobility through an electric transport network.
ERCOT’s grid adapts to record electricity consumption by relying on the growth of solar, wind and battery storage to maintain system stability.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.