French Government Weighs Investment Plan and Tax Adjustments to Lower Electricity Prices in 2025

The French government is actively exploring a range of strategies to reduce electricity prices for consumers amid ongoing political debate in 2025. Economy Minister Roland Lescure revealed that proposals include potential amendments to reduce electricity taxes and a "grand plan of investment" focused on long-term financing for new nuclear reactors and renewable energy projects. This multi-year energy programming plan, requested by Prime Minister Sébastien Lecornu, aims to secure affordable and decarbonized electricity for the future.

Electricity prices in France remain significantly lower than in neighboring Germany — about 40% cheaper — thanks to decades of investment in nuclear power, which has also helped position France as Europe's leader in low-carbon electricity. However, determining whether consumers will see immediate reductions in their bills is complicated by the structure of costs, which combine wholesale price fluctuations, fixed subscription fees, and assorted taxes and contributions. Wholesale prices have recently fallen from nearly 70 euros to around 50 euros per megawatt-hour, but the extent to which this will translate into lower consumer expenses remains uncertain.

Minister Lescure cautioned against simplistic measures like reducing the VAT on electricity, calling such approaches costly and ineffective. Instead, the government plans to balance energy policy with other fiscal priorities such as managing the public deficit. The proposals are expected to be presented to Parliament soon, sparking debate over the best path to decarbonize electricity while maintaining affordability.

This political dialogue reflects the complexity of the electricity market and strong public concern about energy costs, highlighting the government’s intent to adopt comprehensive solutions rather than quick fixes. As discussions continue, the government’s investment and tax strategies could shape France’s energy landscape for years to come.