French President Emmanuel Macron has announced plans to regain control of electricity prices in France by the end of this year. Macron’s statement comes as part of a broader environmental plan and underscores the government’s commitment to addressing energy affordability and competitiveness while simultaneously pursuing ambitious climate goals.
While specific measures for controlling electricity prices were not detailed in Macron’s announcement, he emphasized the importance of state ownership of utility Électricité de France (EDF) and France’s extensive nuclear fleet in achieving this objective. The president also stated that the effort to control electricity prices would extend to both households and businesses, aiming to align them with France’s competitiveness standards.
One key driver behind this initiative is the impact of rising gas prices, particularly influenced by the ongoing conflict in Ukraine, on electricity prices across Europe, including France. An official from the Elysée Palace explained that the government would employ a French energy law to address this issue without waiting for broader reforms at the European Union level to conclude. This indicates France’s determination to take swift action to protect its energy consumers from price fluctuations caused by geopolitical events.
France is a significant advocate of nuclear energy as a means to reduce greenhouse gas emissions and ensure energy security. As part of the multi-year environmental plan, Macron’s government has outlined several measures to accelerate the transition toward cleaner energy sources. These include:
- Phasing Out Coal: France aims to shut down all coal-fired power plants by 2027, a move that will significantly reduce carbon emissions from the energy sector.
- Promoting Electric Vehicles: The plan encourages the adoption of electric vehicles (EVs) over traditional internal combustion engine (ICE) vehicles. This aligns with France’s broader commitment to the development and use of EVs to reduce emissions in the transportation sector.
- Heat Pumps for Heating: Heat pumps are promoted as an efficient way to heat houses, contributing to lower energy consumption and reduced emissions from residential heating.
- Ambitious Emission Reduction Goals: France is committed to reducing net greenhouse gas emissions by 55% by 2030 compared to 1990 levels. Achieving this goal necessitates rapid progress, requiring more substantial emissions reductions in the coming seven years than have been realized in the past three decades.
To finance these ambitious environmental initiatives, the French government has allocated an additional €7 billion in the 2024 draft budget bill. These funds will be sourced through the reduction of tax breaks that certain industries currently enjoy for their use of fossil fuels.
In a related move to address the impact of inflation on households, Macron announced plans to request the fuel industry to sell fuel at cost price. Additionally, the government intends to provide €100 in aid to low-income workers who commute to work. These measures aim to alleviate the financial burden on households affected by rising fuel costs.
Macron’s commitment to “take back control” of electricity prices underscores the government’s efforts to ensure energy affordability while advancing its environmental agenda. By seeking to align electricity prices with France’s competitiveness and protecting consumers from external energy price shocks, the government aims to strike a balance between economic stability and sustainability. Detailed plans for implementing this initiative are expected to be unveiled in October, shedding further light on the specific measures and strategies involved.