The government is preparing to increase taxes on electricity

2023-12-12 18:09:38

Published on Dec 12 2023 at 6:44 p.m.Updated Dec 12 2023 at 7:09 p.m.

The energy crisis is easing. It is time to dismantle the tariff shield, which has protected the French from soaring electricity prices since the start of 2022. The government has made no secret of its desire to gradually exit the system, starting next year. But he now intends to do so by also playing on taxation, which should rise significantly in 2024.

“In the way in which we increase the cost of electricity, we can partly play on this return to normal in taxes,” Jean-René Cazeneuve, the general rapporteur of the Budget, explained this Tuesday on the occasion of a meeting organized by Ajef (Association of Economic and Financial Journalists). The Macronist MP is categorical: “We must return to a pre-crisis level of excise duties. » It remains to define the pace of this return to normal.

9 billion euros in shortfall

The step is high, indeed. Before the war in Ukraine, excise duties on electricity were set at 32 euros per megawatt hour (MWh) for individuals. Since February 2022, they have been lowered to the minimum permitted by European Union rules, i.e. 1 euro per MWh for individuals (and 50 cents for businesses). The shortfall for public finances is considerable: around 9 billion euros per year.

The finance bill for 2024 initially planned to maintain this level of excise duties on electricity for one more year. But the debates of recent days in the Senate have shown that the government is ready to raise them more quickly.

Faced with the senators – who asked to return to the pre-crisis level from 1^is next January – the Minister of Public Accounts, Thomas Cazenave, defended a more progressive measure, which might be retained in the final text of the budget before its adoption thanks to 49.3 scheduled for this Thursday in the National Assembly.

Avoid an average increase of 260 euros

“According to estimates, the regulated electricity sales tariff (TRVE) should increase next February by 2% to 3% maximum. If the TICPE [taxe intérieure de consommation sur les produits énergétiques, NDLR] increases to 32 euros per megawatt hour, the price of electricity will increase by around 20%,” argued the minister to explain his refusal to support the senatorial project.

According to him, this would have resulted in an average increase in the annual electricity bill of the French of 260 euros. “It seems more reasonable to me to gradually increase taxation on electricity, without exceeding an increase of 10%, in accordance with the commitment we have made,” explained the minister.

Halfway

The amendment presented by the government to the Senate left the possibility for the executive to set the level of excise duties by decree. Thomas Cazenave, however, clarified during the debates that it was a question of going halfway, that is to say of “increasing the TICPE by 15 euros maximum”.

Such an increase would allow the government to respect its promise not to let electricity bills increase by more than 10% next February. And to send an important political signal on the end of exceptional measures. While remaining careful. “The tariff shield is maintained for 2024. The shock absorbers for businesses and local authorities are maintained for 2024. So today we have the systems that protect us,” recalled Jean-René Cazeneuve.

1702428898
#government #preparing #increase #taxes #electricity