Regulator proposes higher electricity tariffs from August 1

Paris – 16/07/2026: France’s energy regulator CRE has proposed that the government raise regulated electricity tariffs by an average of 2.5 percent including taxes as of August 1, 2026. The draft will now be submitted to the Supreme Energy Council. Formally, the decision rests with the ministers responsible for energy and the economy. The measure would primarily affect households on the regulated retail tariff offered by EDF and local suppliers.

For a household with annual consumption of 4.5 megawatt-hours, CRE estimates an average additional gross cost of 26 euros per year. Under this model, the bill would rise from 1,046 to 1,072 euros. Depending on the contractually agreed capacity, tariff option and actual consumption, however, the change may differ significantly from the average.

The planned adjustment is primarily driven by the higher grid usage tariff, which finances electricity transmission and distribution. It also includes a new capacity mechanism in the tariff calculation. This instrument is intended to ensure that sufficient reliable generation capacity is available during periods of high demand. Its first auction took place on July 6, 2026.

The only mitigating factor is a slight reduction in the electricity consumption tax for customers with a connection capacity of up to 36 kilovolt-amperes. It is due to fall from 30.85 to 30.62 euros per megawatt-hour on August 1. According to CRE, however, this tax effect is not enough to offset rising grid and capacity costs.

At the end of March 2026, 19.37 million private customers in metropolitan France had contracts under the regulated retail tariff. The tariffs are offered by the historic suppliers EDF and local distribution companies. They include electricity procurement, grid charges, distribution costs and statutory levies, and therefore differ from freely priced market offers from other providers.

Regulated tariffs are generally reviewed twice a year, in February and August. Their calculation follows the principle of cost stacking. In addition to procurement costs, they incorporate electricity grid costs, supplier remuneration and taxes. The current recommendation is therefore less an expression of immediate developments on the electricity exchange than a consequence of regulated infrastructure and supply costs.

CRE is also proposing structural changes. The tariff option with peak and off-peak periods is to become available in future for capacities of three kilovolt-amperes as well. Further adjustments are planned overseas, including the gradual replacement of older tariff models. These elements do not change the fact that the specific burden on individual customers will only be known once the final tariff schedules are published.