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Electricity bills are set to remain stable in France over the next two years, particularly for households on regulated tariffs, says the government. 

This is despite the expiry on December 31, 2025 of a scheme requiring state-owned electricity supplier EDF to sell nuclear power to competitors at reduced prices.

“Bill prices should remain stable at least in 2026 and 2027… given the low prices of French low-carbon energy on the wholesale markets,� France’s Finance Ministry is quoted as saying in a statement to AFP news agency.

This applies mostly to households on a form of regulated tariff – around 56% of homes in France – with those on other contracts potentially seeing prices rise. 

However, increases to both gas and electricity bills may come from suppliers passing down the financing of CEE ‘energy renovation’ credits to households. 

New system taxes excess EDF profits

The end of the so-called ‘Arenh’ measure, which has been in place for 15 years, at the end of this year initially led to concerns that bills may rise to offset the new higher prices. 

‘Arenh’ is a rule that required EDF to sell between 25% to 33% of its nuclear-created electricity to high-energy industries and competing energy suppliers for a fixed price that was often lower than typical energy prices. 

The system thus allowed suppliers to buy energy at lower prices than it would usually be able to - and has long been opposed by EDF.

Currently, this fixed price is €42 per MWh.

The deal is to be replaced by a new system that will allow EDF to negotiate freely with industries and rival suppliers, although market rates will ultimately see negotiations fall within a set boundary. 

If EDF revenues reach above certain thresholds – initially, electricity being sold at €78 per MWh with a second band at €110 per MWh – it will face additional taxes that will be distributed back to bill payers.

Current prices outside of the Arenh measure are around €50 per MWh – only €8 per MWh more than the reduced tariffs under the scheme – meaning there is little chance of these reductions coming into force in 2026, as the first round of negotiations are unlikely to see much alterations. 

The new system has been described as a form of ‘safety net’ by the Finance Ministry, and a "compromise between consumer protection… [and need] for investment in the energy system of the future, and in particular in the nuclear programme for EDF.â€� 

There are concerns, however, that it will cause bills to rise after 2027 - but this remains uncertain until the new system is up and running.