Macron Announces France's Intent to Reassert Authority Over Electricity Pricing

26 Sep, 2023

Macron Announces France's Intent to Reassert Authority Over Electricity Pricing

French President Emmanuel Macron announced on Monday that his administration intends to regain control over electricity prices by the end of the year. While he did not provide specific details on the measures to be taken, Macron emphasized that state ownership of the utility company EDF and France's nuclear energy assets would play a role in achieving this goal.

Macron, during the unveiling of an extensive multi-year environmental plan, underscored a pivotal agenda item for bolstering competitiveness. He disclosed, "In October, we will reveal our strategy for reclaiming authority over electricity pricing. This move will enable us to announce electricity rates that align with our competitiveness, delivering advantages to both households and businesses. Our aim is to regain control over electricity prices, both domestically in France and at the European level, by year-end."

An official from the Elysee Palace explained that this objective would be accomplished through the implementation of a French energy law. This legislation would address the impact of rising gas prices on electricity costs in Europe, particularly in France, amidst the ongoing Ukraine conflict. Importantly, this approach would not be contingent on the completion of a reform being pursued at the European Union level.

As France heavily relies on nuclear energy to mitigate emissions, the multi-year green transition plan includes phasing out coal-fired power plants by 2027, promoting the adoption of electric cars over thermal engines, and encouraging the use of heat pumps for residential heating. These measures aim to achieve a 55% reduction in net greenhouse gas emissions by 2030, compared to 1990 levels, with the goal of accomplishing more in the next seven years than in the preceding 33.

Additionally, the government has already earmarked an additional 7 billion euros in the 2024 draft budget bill for eco-friendly investments. This funding will be sourced by eliminating certain tax incentives for industries with fossil fuel consumption.

In response to inflationary pressures on households, Macron also announced measures to request the fuel industry to sell fuel at cost price and provide a 100-euro aid package for the lowest-income workers who commute to work. These steps are aimed at mitigating the impact of inflation on households.