The French government has announced that regulated residential electricity tariffs will surge by 10% starting in August 2023, a level significantly lower than the recommendation made by the French Energy Regulatory Commission (CRE), which suggested an increase of 74.5% based on current market prices. This will be the only price hike until February 2024. France’s cap on electricity prices will be phased out at the end of 2024.
Since 2016, electricity prices for households in France rose by average of 4%/year to €20.8c/kWh in 2022. They remain almost 30% below the EU average (in 2021), due to the importance of nuclear and hydropower in the country’s power mix. The tariff shield for electricity limited regulated sale tariff (TRV) increase at 4% in 2022. In 2023, TFV rise is capped at 15%. In addition, in February 2022, the government lowered the excise tax on electricity from €23.6/MWh to €0.5/MWh for industry and from €25.7/MWh to €1/MWh for households.