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Abandonment of the price shield, increase in taxes… Cheap electricity in France is well and truly over

2024-01-29T17:10:22.023Z

Highlights: Abandonment of the price shield, increase in taxes… Cheap electricity in France is well and truly over. The gradual end of the tariff shield causes further price increases. The one scheduled for February 1 will practically reach 10%. Despite the almost 10% increase in electricity prices on February 1, do French households remain privileged compared to their European neighbors? “France will keep electricity bills among the lowest in Europe,” said Bruno Le Maire, the Minister of the Economy, on Sunday January 21.


The gradual end of the tariff shield causes further price increases. The one scheduled for February 1 will practically reach 10


Despite the almost 10% increase in electricity prices on February 1, do French households remain privileged compared to their European neighbors?

“France will keep electricity bills among the lowest in Europe,” said Bruno Le Maire, the Minister of the Economy, on Sunday January 21 after his interview on TF1’s 20 Heures.

Over the last three years, we will have had smoothed prices, where they will have literally exploded everywhere else in Europe, sometimes to the point of doubling.

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If the Minister of the Economy, who has just taken over the energy portfolio, is generally right, it is nevertheless necessary to provide some clarifications.

First of all, this new increase planned for February 1 occurs while prices on the wholesale markets are falling.

But the State decided that it was the time to raise a tax (the TICFE, or internal tax on final electricity consumption) by two thirds, lowered to a minimum in February 2022, as part of the tariff shield.

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Source: leparis

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