French households may soon see a modest reduction in their electricity bills following a Senate vote on Saturday approving a tax cut on electricity consumption.The amendment to the 2026 budget proposal aims to alleviate pressure on consumers facing high energy costs, though the actual savings will vary based on individual usage and could be offset by a planned increase in gas taxes. Selectra has analyzed the potential financial impact of the proposed changes for different types of homes, outlining what consumers can expect if the measure becomes law.
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Households heated by electricity may soon see some relief. The French Senate approved an amendment to the 2026 budget proposal late Saturday, paving the way for a reduction in taxes on electricity. But how much will this translate to savings on annual bills? Selectra has analyzed the potential impact of this measure on various types of homes.
The Senate’s Plan: Reducing Electricity Taxes
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As energy prices remain a major concern for French consumers, the Senate’s majority group has moved to address the issue through tax policy. The adopted amendment proposes a reduction in the electricity excise duty (formerly known as TICFE), a tax applied to each kilowatt-hour consumed.
The measure is technical in nature, but its effect is direct: the excise duty rate for individuals would be reduced by €3 per MWh (megawatt-hour) starting in 2026. Applying 20% VAT to this tax reduction equates to a savings of €3.60 including VAT for every 1,000 kWh consumed.
This initiative aims to correct an inconsistency: why heavily tax electricity, which is produced in France and emits low levels of CO2, while simultaneously seeking to move away from fossil fuels? To limit the impact on state revenues, the excise duty on gas will be increased.
Simulations: How Much Will You Save on Your Electricity Bill, Based on Your Home?
To provide clarity, we’ve simulated the impact of this tax reduction on the annual bills of five typical consumer profiles.
| Type of Housing | Average Annual Consumption | Estimated Savings (Including VAT) |
|---|---|---|
| Studio / Small Apartment (Electric Heating) |
2,500 kWh | – €9.00 |
| Average Apartment (Couple) (Electric Heating) |
4,500 kWh | – €16.20 |
| Standard House (3-4 people) (Electric Heating) |
8,000 kWh | – €28.80 |
| Large House (Electric Heating + Water Heater) |
12,000 kWh | – €43.20 |
| Poorly Insulated House / High Consumption (Electric Heating) |
16,000 kWh | – €57.60 |
Selectra estimates based on a reduction of €3/MWh excluding VAT, or €3.60/MWh including VAT, base option.
The greater your electricity consumption, the more noticeable the savings will be. For a large family living in a home heated by electricity, savings could approach €45 to €50 per year. While not a dramatic reduction, it represents a tangible benefit after years of rising costs.
2026 Excise Duty Reduction: What Impact on Your Bill?
Thanks to the excise duty reduction, you will save:
– €27.72
/year including VAT
This represents a decrease of approximately 1.6% of your total bill.
The amendment provides for a reduction of €3 per MWh on the excise duty (TICFE) in 2026. This tax is subject to VAT (20%), so the actual reduction is €3.60 including VAT per MWh consumed.
Calculation Details:
Excise Duty Reduction (Excluding VAT):
– €23.10
VAT Impact (20%):
– €4.62
Total Savings Including VAT:
– €27.72
The Trade-off: Gas Will Pay for Electricity
While this measure is good news for electricity subscribers, it comes with a trade-off. In parallel, the senators voted to increase taxes on natural gas to finance this tax “gift” without increasing the state deficit.
Caution for “Mixed” Households
If you use electricity for your appliances but gas for heating, the calculation is different. The increase in the gas tax (+€4.40/MWh) could offset the savings obtained on your electricity consumption. The Senate’s stated goal is to financially incentivize French citizens to abandon gas boilers in favor of electric solutions such as heat pumps.
However, there is one important exception: the senators excluded fuel oil and LPG from this increase, in order not to penalize rural households who often have no other choice for heating.
The same electricity, at a lower price!
Save money by switching providers with Selectra
The current offer is 20% (excluding VAT) cheaper than the regulated tariff
A fixed-price offer at a lower cost
Is This Final? The Legislative Process Continues
It’s important to note that this Senate vote is just one step in the process. We are in the back-and-forth phase of the 2026 Finance Bill. The text must now return to the National Assembly.
The government, through the voice of Economy Minister Roland Lescure, welcomed the proposal with a “wise” view (neither favorable nor unfavorable), recognizing that it “made a lot of sense” for France’s energy sovereignty. However, nothing is certain until the final budget is adopted in December.
If this tax reduction is approved, it will apply, at best, on January 1, 2026, or even February 1st. To save money immediately this winter, the most effective approach remains to compare electricity offers from different suppliers.
Currently, market offers are often more competitive than the regulated tariff of EDF, with discounts exceeding 20%. Switching suppliers allows you to save money immediately, far more than the few dozen euros promised by the tax reduction.
Here are the cheapest electricity offers currently available to reduce your bill today:
Prices in € including VAT.
Simulations performed for a domestic consumption of 10,800 kWh per year and a power of 9 kVA in Lyon.
Learn more about our Selectra Score.
Only the most competitive offer from each energy supplier is mentioned.
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The current offer is 20% (excluding VAT) cheaper than the regulated tariff
A fixed-price offer at a lower cost
