Regulated Electricity Tariffs to Drop by an Average of 15% Starting February 1: A Relief for Millions of Households

For the first time in ten years, regulated electricity tariffs will decrease, with an average reduction of 15% effective February 1, 2025. This decrease, announced by the French Energy Regulation Commission (CRE), will benefit approximately 24 million households, representing 70% of French homes.

Significant Impact for Consumers

The price drop is attributed to declining electricity market rates observed over the past two years. The cost per megawatt-hour (MWh) will fall from €281 to €239, resulting in an average annual saving of €190 for a household consuming 4.4 MWh. For a family of four relying on electricity for heating, cooking, and charging an electric vehicle, annual savings could amount to approximately €650. For a couple living in an apartment, the reduction is estimated at around €107 per year.

Françoise, a 78-year-old retiree, shared her relief: “I will save more than €10 per month. For me, this is good news because I am already paying €90 per month, compared to €60 two years ago.”

However, this reduction is limited to households on regulated tariffs. Around 10 million households who have chosen market-based offers will not benefit directly, although many have already taken advantage of falling market prices.

A Change Overseen by the CRE

CRE President Emmanuelle Wargon highlighted that this reduction represents a “notable boost in purchasing power,” even though prices remain slightly higher than pre-2022 levels, following the energy crisis caused by the war in Ukraine. She encouraged consumers to compare rates to ensure their contracts remain competitive.

At the same time, increases in taxes and network delivery tariffs (TURPE) will partially offset the price decrease. These adjustments also mark the end of the tariff shield introduced to protect households during the energy crisis.

An Uncertain Future

Despite this reduction, the future of regulated tariffs remains uncertain, with the CRE citing many unknown factors for 2025. Nevertheless, for consumers, the current context offers a significant opportunity to achieve substantial savings after several years of steep price hikes.

In conclusion, while the decrease in regulated tariffs is excellent news for most households, it comes with the need for increased vigilance regarding taxes and market offers. Consumers must remain alert to fully benefit from this new energy landscape.