2025 Budget: Energy Professionals Stand Firm Against Rising Electricity Taxes

As the examination of the finance bill, which sets the state’s budget, begins on Wednesday, October 16, the French Nuclear Energy Society (Sfen), alongside several professional federations (1), is raising alarms about the planned increase in electricity taxes.

In an open letter to parliamentarians, energy professionals warn of the disastrous consequences of rising electricity prices. They remind that France remains heavily dependent on fossil fuels, which still account for two-thirds of its energy consumption, weighing down the trade balance with over €65 billion in annual imports.

The coalition criticizes an unprecedented increase in the electricity tax, which could rise from €21/MWh to €30 or even €50/MWh (excluding VAT) as early as 2025. According to them, this increase risks creating a major economic shock for households and businesses. While France is betting on electrification to reduce its dependence on hydrocarbons, they point out that “taxation already represents nearly a third of the total electricity bill and could soon become the largest cost, meaning electricity consumers contribute more to the state’s budget than to the goods and services they consume.”

Energy professionals describe this tax increase as both “ecologically and economically nonsensical.” They argue that “encouraging the French to adopt electrified usages becomes impossible with increasing electricity taxation.” Such a policy, far from promoting energy transition, risks hindering decarbonization efforts. “If citizens lose confidence in electrification, our dependence on carbon-based energy will continue, jeopardizing our climate goals,” they warn.

The signatories call for a fundamental reform of energy taxation, in favor of decarbonized and competitive electricity, to make it more accessible and attractive compared to fossil fuels.

Read the full letter here: Open Letter to Parliamentarians.

Thomas Jaquemet

Photo Credit – ©Assemblée nationale

(1) Afpac, Avere, Enerplan, FFIE, FIEEC, France Hydro Electricité, France Hydrogène, France Renouvelables, Gifam, Gifen, Gimelec, Ignes, Promotelec, Ser, Sfen, UFE.