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France Weighs Power Bill Cuts as Wholesale Prices Fall

Ministers are assessing tax changes that could lower electricity bills at the expense of gas-heated households.

Overview

  • On Nov. 26, Prime Minister Sébastien Lecornu asked ministers to present options to reduce household electricity costs.
  • Wholesale prices have recently hovered around €50 per MWh, down from roughly €70 per MWh a year ago, according to market data cited in reports.
  • An option discussed in the Senate would raise gas taxation to fund lower levies on electricity, increasing costs for about 11 million homes that heat with gas.
  • Taxes and contributions make up a large share of residential power bills, and the government says it intends to trim electricity taxes next year.
  • Experts caution that the end of ARENH and higher energy-efficiency obligations rising from €6bn to €8bn could limit relief, with one specialist expecting the regulated tariff to hold steady at the Feb. 1, 2026 review.