Starting February 1, 2025, regulated electricity prices in France will drop by 15%, benefiting around 24 million households. This decrease is due to falling wholesale prices, setting the new average tariff at 239 euros per megawatt-hour. While consumers may save significantly, some tax increases could mitigate these savings. The reduction will be reflected in bills beginning in March 2025 for bi-monthly subscribers, providing much-needed relief for many households.
Exciting News for Electricity Consumers: A 15% Reduction in Regulated Prices
Starting February 1, 2025, the regulated electricity prices (TRV) will see a remarkable decrease of 15%, marking the first reduction in a decade! This significant announcement from the Energy Regulatory Commission (CRE) will benefit approximately 24 million households in France, which represents nearly 70% of all households. Let’s dive into the essential statistics and the tangible effects of this groundbreaking reduction.
Understanding the Reasons Behind This Decline
This price drop is primarily attributed to the recent decline in wholesale electricity prices. In December, these prices continued to fall, leading to a revision of earlier forecasts that anticipated only a 14% decrease. Consequently, the new average TRV for subscribers will be set at 239 euros per megawatt-hour (MWh), down from the peak of 281 euros that followed the price hikes between 2022 and 2024.
Emmanuelle Wargon, CRE president, highlighted, “This marks the first reduction in TRV prices in at least ten years,” pointing out that this decline comes after a challenging three-year period of escalating prices due to the energy crisis.
How much can you save with this price reduction? Depending on individual consumption patterns, the impacts could be substantial:
- A family of four with high consumption could save around 650 euros annually (covering heating, cooking, and electric vehicle charging).
- A household with a peak/off-peak subscription, which spent 1,863 euros in 2024, may see savings of approximately 389 euros.
- For a couple living in an apartment with lower energy needs, the reduction could lead to savings of about 107 euros per year.
It’s important to note that these savings apply specifically to TRV subscribers. The 10 million households on market offers may experience different changes in their bills based on their suppliers’ pricing strategies.
Balancing Savings and Tax Increases
While the gross price of electricity is decreasing, certain tax increases may offset some of these benefits:
- Excise tax (formerly TICFE) will see an increase of 15 euros/MWh due to the conclusion of the price shield.
- The Public Electricity Network Usage Tariff (Turpe) will increase by 6 euros/MWh.
Despite these tax hikes, the overall advantage is clear: consumers will see an average price reduction of 42 euros/MWh.
For those who have opted for market offers, the landscape is a bit more complex. Although some market offers were previously up to 30% cheaper than TRV, the gap may close due to the tax increases. Nonetheless, the most competitive market offers will still be around 10% lower than the regulated tariff after the price drop.
The CRE encourages consumers to actively compare rates to ensure they are getting the best deal. Wargon emphasized the need to scrutinize “abnormally low” offers to safeguard consumers against potential issues.
When can consumers expect to see this decrease reflected in their bills? For those with bi-monthly billing, the reduction will appear in March 2025. Monthly billing subscribers will see adjustments gradually over time.
For individuals like Françoise, 78 years old, this price reduction is a welcome relief. “I will save more than ten euros a month. It may seem small, but with my limited pension, it’s a significant amount,” she shares.
Conversely, Charles, who transitioned from the regulated tariff to a market offer, acknowledges a limited impact. “I might pay 3 euros more each month due to the tax increase, but my overall contract remains more beneficial,” he states.