The government is scrapping the electricity rate increase scheduled for August 1, 2024

The French government has decided not to implement the approximately 1% increase in electricity prices scheduled for August 1, 2024. This decision comes amid a sensitive political climate and avoids a second increase following the one in February 2024.

TURPE, a component of the electricity bill

The fee for using public electricity distribution networks (TURPE) accounts for about one-third of the electricity bill. It compensates the electricity transmission system operator (RTE) and the distribution system operator (Enedis) for the use of their networks.

Households and Businesses Avoided a Price Hike

If this annual adjustment had been implemented on August 1, the electricity bills of some 22 million households and businesses on the regulated rate would have increased by about 1 percent. This relatively modest increase would still have had an impact on consumers’ purchasing power, given the current high energy prices.

A volatile political climate

This increase reportedly occurred amid a sensitive political climate, as energy prices were a central issue in the European and legislative election campaigns. The government therefore chose not to publish the deliberations that led to the adjustment of the TURPE.

Electricity bills are expected to drop in February 2025

Economy Minister Bruno Le Maire announced an upcoming 10- to 15-percent reduction in electricity bills in February 2025, due to the sharp drop in prices on wholesale markets. This announcement should reassure consumers and ease political tensions surrounding energy prices.

This decision, along with the announcement of lower electricity bills in February 2025, should help ease consumers' concerns about energy prices.