Since the beginning of 2022, energy prices have risen sharply, following the war in Ukraine. Almost two years on, and with the energy crisis seemingly behind us, rates for both fuel and electricity have yet to come down. But the government still wants to put an end to the tariff shield and raise taxes again in 2024.
It's an amendment that has gone rather unnoticed in recent weeks, yet it could have a major impact on the French budget. Next year, Bercy will once again be able to increase the level of the domestic tax on the final consumption of electricity (TICFE), which had fallen at the start of 2022, from 32 to 1 euro per MWh. This tax should return to its pre-crisis level, with a threshold of around 15 euros per MWh, without exceeding a 10% increase in February 2024.
Initially, the Finance Bill envisaged maintaining this level for a further year, but the government decided to go ahead more quickly. As a result, households will have to reckon with an extra 130 euros a year on their bills, while inflation is still raging, particularly for everyday foodstuffs. If this tax had not been raised, the French would have suffered an increase of "only" 2 to 3%.
