French Finance Committee Adopts Amendment to Cap Electricity Prices in 2026 Budget

On October 22, 2025, the French Finance Committee approved a significant amendment targeting electricity price regulation as part of the 2026 budget discussions. The amendment, pushed by left-wing deputy Maxime Laisney and supported notably by the far-right RN party, aims to dismantle a controversial provision in the electricity pricing mechanism set to come into effect on January 1, 2026. This mechanism initially allows EDF greater freedom to sell its nuclear-produced electricity on the market while promising a "unique nuclear payment" to consumers if revenues surpass a state-defined ceiling.

The committee’s amendment challenges the predictability of how EDF’s surplus revenues are redistributed to consumers, calling for a new approach that captures excess earnings beyond a margin of 3.5%. Additionally, it proposes revising the calculation of regulated electricity tariffs, favoring production costs as the basis rather than fluctuating market prices. The amendment also advocates for reinstating regulated gas tariffs, which were replaced by a less protective benchmark price in mid-2023.

These legislative efforts reflect concerns highlighted in a recent parliamentary report by deputies Philippe Bolo and Maxime Laisney regarding consumer protection, EDF’s financial sustainability, and the financing of necessary nuclear investments. By addressing these issues, the amendment attempts to balance market liberalization with consumer and energy sector stability considerations.

This development underscores ongoing tensions in France’s energy policy amid budget talks, as lawmakers seek to ensure fair pricing and financial clarity for both producers and consumers going into 2026.