“It’s a difficult decision, but a necessary decision,” he said, “to protect public finances”, and move away from the “whatever it costs” measures introduced to prop up the economy during the Covid-19 pandemic and extended as energy costs skyrocketed with Russia’s invasion of Ukraine.
In September the government had promised to not raise electricity prices more than ten percent in 2024.
The rate hike – a result in an increase in the power consumption tax cut in 2021 – will mean a family with two children living in a house will see their electricity costs go up 18 euros a month, Le Maire said.
President Emmanuel Macron said last week that electricity prices would be return back to “normal” levels, while remaining lower than rates in neighbouring Spain, Germany and Italy.
Le Maire said a second and final rate increase will be implemented in February 2025, to end the subsidies.