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PARIS – French energy policy and European market dynamics were in sharp focus December 5, 2025, as the Senate debated key changes to electricity billing and VAT rates, while a surprising influx of American liquefied natural gas (LNG) tempered concerns over a cold European winter. Delays surrounding the publication of France’s long-awaited multi-year energy plan, the Programmation Pluriannuelle de l’Énergie (PPE), add another layer of uncertainty. This dispatch breaks down the day’s developments, from legislative decisions impacting household bills to international forces reshaping the continent’s energy future, and emerging innovations in the sector.
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The French Senate challenged government plans on December 5, 2025, rejecting a proposal for RTE to manage the future electricity pricing mechanism and voting to lower VAT to 5.5% for air-to-air heat pumps. Meanwhile, European gas prices are falling despite the cold weather, driven by a significant influx of American LNG. However, the energy future remains uncertain, as the publication of France’s PPE, its energy roadmap, could be postponed until January 2026, adding to existing delays. This report details a day where political decisions and market forces are reshaping the energy transition.
France: Senate Imposes Its Vision on Energy Bills
- 5.5% VAT: A Boost Approved for Air-to-Air Heat Pumps: Senators adopted amendments lowering the VAT for these appliances, as well as for urban cold subscriptions. The measure is contingent on installation by certified professionals. More info
- Electricity Prices: Senate Refuses to Entrust Keys to RTE: Senators removed the article entrusting the management of the “universal nuclear levy” (VNU) to the grid manager, preferring a trusted third party such as the Caisse des Dépôts to manage these financial flows. More info
- Publication of the PPE Could Be Postponed Until January 2026: Already two years behind schedule, France’s energy roadmap, which sets targets for solar and wind power, could face another delay due to budgetary debates. More info
- Post-Arenh Mechanism: Administration Consults on Details of Nuclear Tax: Two texts are under consultation to clarify the terms of revision of tariffs and payment of the tax on nuclear fuel, which will redistribute part of EDF’s revenues. More info
Europe and the World: Falling Gas Prices and Nuclear Debate
- Why Are Gas Prices Falling in Europe Despite the Cold?: The abundance of American LNG, diverted from Asia due to weak demand, is flooding the European market and offsetting lower-than-normal stocks, driving prices down. More info
- Nuclear: German Citizens Mobilize Massively Against Small Modular Reactors (SMRs): The European consultation on SMRs received an avalanche of responses from individuals, including 41% of Germans opposed to the technology, contrasting with the support shown by Italian contributors. More info
- Europe Unlocks €5.2 Billion for Clean Technologies: The Commission is launching three calls for proposals via the Innovation Fund to finance hydrogen, industrial decarbonization, and zero-emission technologies, using revenues from the carbon market. More info
Innovations and Companies
- Wooday Launches “Firewood” Subscription: The company offers a monthly package starting at €49/month including delivery of certified wood and stove maintenance, similar to gas or electricity packages. More info
- Certification for Eastern Mediterranean Gas?: Regulators are working on a system of origin guarantee for this gas, to secure European supplies before the ban on Russian gas scheduled for 2027. More info
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- Exclusive Deals from our experts
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