The French government has announced that retail electricity prices for households and small companies will increase starting February 2024, by 8.6% for basic electricity tariffs and by 9.8% for peak / off-peak hours option tariffs.
This increase is part of the phasing out of the "tariff shield" introduced in October 2021 in a context of soaring prices and helped reduce the impacts of the energy crisis that followed the war in Ukraine. The measure consisted in the reduction on the electricity consumption tax during the energy price crisis from €3.2c/kWh to €0.1c/kWh to help households cope with surging power prices, and the price hike reflects an increase in the tax to €2.1c/kWh. The tariff measure, which was due to end by December 2023, will remain in place until February 2025.
The French government had indicated that prices would rise no more than 10% as it aims to return to its electricity consumption tax to pre-energy crisis levels. The measure is considered as necessary to guarantee the investment in new power production capacities. The next hike is expected to take place in February 2025.
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