Electricity prices - France

Overview of the French Electricity Market

Primary Electricity Sources in France

France’s electricity generation is dominated by nuclear power, with a significant contribution from renewables and a minimal share from fossil fuels. In 2024, French electricity output reached a five-year high of 536.5 TWh, of which 67% (361.7 TWh) was produced by nuclear reactors. This marked a strong rebound for nuclear generation after two years of unusually low output (due to extended maintenance and technical issues). Hydropower provided about 14% of generation in 2024 (74.7 TWh), its highest level since 2013, while wind and solar energy combined for roughly 13% (70 TWh). In total, around 28% of France’s electricity came from renewable sources in 2024, and 95% of all generation was CO₂-free (nuclear + renewables). Fossil fuel generation (gas, coal, oil) dropped to 19.9 TWh – the lowest level since the 1950s – accounting for under 5% of the mix. This reflects a long-term trend of decarbonization: France has historically relied on its large fleet of 56 nuclear reactors (built since the 1970s) for about 70–75% of its electricity, and in recent years it has aggressively expanded wind and solar capacity to meet climate goals. The near-elimination of coal-fired generation (with only a few backup units remaining) and the increased share of renewables have further reduced France’s carbon intensity to record lows (around 21 gCO₂/kWh in 2024).

France’s electricity demand has been relatively stable or slightly declining in recent years due to efficiency improvements and economic factors. In 2024, consumption saw a modest rebound of +0.7% after pandemic-era declines, but it remains below pre-2020 levels. Thanks to the recovery of nuclear output, France returned to being a major power exporter – in 2024 it exported 101 TWh and imported only 12 TWh, achieving a record net export of 89 TWh. This highlights the country’s position as a key electricity exporter in Europe when its nuclear fleet is fully operational. Going into 2025, the primary energy mix remains roughly two-thirds nuclear and one-third renewables, with fossil generation largely limited to balancing needs. The French grid operator RTE and government plans aim to maintain high nuclear output (including life extensions and new EPR reactor projects) while accelerating renewables deployment (offshore wind, solar farms, etc.), so the national supply stays highly decarbonized and sufficient for domestic demand and exports.

Electricity Price Formation for Residential and Industrial Consumers

Electricity prices for end customers in France (both households and businesses) are composed of several components: energy supply costs, network charges, and taxes/fees. Each component plays a distinct role in the final price:

• Energy Supply Cost (Generation & Retail): This is the cost of producing or procuring the electricity and the supplier’s margin. For customers on regulated tariffs or fixed-price contracts, this component is often based on a mix of EDF’s nuclear production costs and wholesale market prices. Notably, France has a mechanism called ARENH (Accès Régulé à l’Électricité Nucléaire Historique) that allows alternative suppliers to buy a quota of EDF’s nuclear output at a fixed price (historically €42/MWh) – this helps keep the energy cost component lower for consumers by reflecting the relatively cheap nuclear base load. For customers on market-indexed offers, the energy price follows wholesale market fluctuations. In any case, the energy component typically constitutes roughly half of the final bill (though this varies with market conditions). During 2022–2023, government interventions (a “bouclier tarifaire” price shield) temporarily limited energy price increases for households, highlighting that the state can influence this part of the price in exceptional circumstances. Industrial consumers often have contracts more directly tied to wholesale prices or long-term supply agreements; large industrial sites (>36 kVA demand) are not eligible for regulated tariffs and negotiate market-based prices, sometimes indexed to quarterly or annual market rates.

• Network Charges (Transmission & Distribution): All consumers pay regulated charges for the use of the public electricity grids. In France this tariff is known as TURPE (Tarif d’Utilisation des Réseaux Publics d’Électricité), which covers the costs of the transmission system (operated by RTE) and distribution networks (operated largely by Enedis and local distributors). TURPE is set by the energy regulator (CRE) and updated periodically (generally annually, with multi-year TURPE plans). For a typical residential user, network charges currently amount to about €0.06 per kWh (excl. VAT), which is roughly 20–30% of the total electricity bill (TTC), depending on energy prices. This portion includes fees for maintaining power lines, managing the grid, and meter services (with the nationwide rollout of smart Linky meters, these costs are included as well). The TURPE is paid by all consumers regardless of supplier – it is passed through your bill and then remitted to the network operators. Industrial consumers likewise pay network tariffs; larger users may pay slightly different rates (e.g. if connected at high voltage levels or with bespoke network services) but the principle is the same. From 2025, a new TURPE period (TURPE 7 for 2025–2028) takes effect, with an update that was exceptionally moved to Feb 1, 2025 (instead of Aug) to synchronize with falling wholesale prices and avoid offsetting a scheduled price drop with a delayed network charge increase.

• Taxes and Levies: France applies several taxes and contributions on electricity bills, which together form a substantial share of the end price. As of 2025, the main tax is the electricity excise tax (formerly known as CSPE – Contribution au Service Public de l’Électricité – and previously as TICFE). This accise is charged per kWh and funds public service obligations like renewable energy subsidies, cogeneration, and tariff equalization in non-interconnected zones. For households and small businesses (meter <36 kVA), the rate in early 2025 is €33.70/MWh (approximately €0.0337/kWh). This rate had been temporarily reduced during the 2022 energy crisis (to mitigate bills) and is now returning toward its pre-crisis level (22.5 €/MWh prior to 2022). For medium-sized consumers (36–250 kVA) the excise is slightly lower (26.23 €/MWh), and for large industrial sites (>250 kVA) it’s about 22.50 €/MWh – reflecting tax policy that gives energy-intensive industries a break on taxes. Local electricity taxes (communal and departmental taxes on final consumption, previously called TCFE) have been integrated into this national excise as of 2023, simplifying the tax structure. Another fee on the bill is the CTA (Contribution Tarifaire d’Acheminement), which is a small contribution applied to the fixed portion of the bill (around 27% of the fixed network costs) to fund the pension scheme of employees in the electricity/gas sectors. Finally, Value-Added Tax (TVA) applies twice: a 5.5% VAT is applied to the fixed subscription and CTA, and the standard 20% VAT is applied on the energy and network usage charges as well as on other taxes (yes, it’s a tax on taxes). In total, taxes (accise, CTA, VAT) account for roughly a quarter of the final bill. For example, a household consuming 6,500 kWh/year (9 kVA meter) pays about €444.5 in taxes annually, about 24.3% of a €1,825 total bill. This share can rise if energy prices drop (taxes becoming a larger percentage) or fall if energy prices spike.

Summary of Bill Composition: In broad terms, an average residential bill in 2025 breaks down as roughly 50% energy cost, 25–30% network charges, and 20–25% taxes. For industrial consumers, the breakdown is similar, though large users often benefit from reduced tax rates and can negotiate energy supply at finer market-indexed terms. Industrial electricity prices (per kWh) are generally lower than residential before tax, but large users pay significant total amounts and are very sensitive to wholesale market trends. It’s also worth noting that France maintains regulated tariffs (Tarifs Réglementés de Vente, TRV) for electricity, known as the “tarif bleu” for households and small businesses. These regulated rates are set periodically by the government upon proposal by the CRE, and they reflect an average cost of EDF’s power generation (including the ARENH nuclear price) plus network fees and taxes. As of 2025, about 20.5 million residential customers are still on the regulated tariff (primarily with EDF). Larger consumers (>36 kVA) were historically not eligible for regulated rates and must choose market offers; however, due to the energy crisis, eligibility for regulated tariffs was temporarily extended to all businesses in 2023–2024 (to allow medium-sized enterprises to benefit from price caps). In any case, all end-user bills – whether on regulated or market prices – ultimately include the same structure of network charges and taxes described above.

Dynamic Electricity Tariffs in France

Dynamic electricity tariffs are pricing contracts where the price per kWh fluctuates in time, usually following short-term wholesale market prices. Unlike a standard fixed tariff (or even a simple day/night tariff), a dynamic pricing contract can vary hour by hour or day by day based on market conditions. In practical terms, these offers leverage France’s 35 million smart meters (Linky) to measure consumption in real time and bill customers at prices tied to the electricity exchange prices (typically the day-ahead market on EPEX SPOT). The EPEX SPOT exchange sets a spot price for each hour of the next day through auctions, reflecting supply/demand – prices tend to be low when demand is low or wind/solar production is high, and prices spike during peak demand or supply shortages. Consumers on a dynamic tariff pay a rate that tracks these hourly wholesale prices (often with a small supplier markup or fixed monthly fee). For instance, if the EPEX spot price at 3:00 AM is €20/MWh (2 c€/kWh) and at 7:00 PM is €200/MWh (20 c€/kWh), a dynamic tariff customer would see those prices in their usage billing for those hours (plus fees). In France, some dynamic offers even allow exposure to negative prices (which occur on the exchange during oversupply); conversely, prices can occasionally jump to extreme highs (European market rules allow prices up to around €3,000–4,000/MWh in scarcity situations). In practice, typical daily prices might range roughly between 5 c€ and 30 c€ per kWh, but the key is that they change every hour, incentivizing customers to shift consumption to cheaper periods if possible.

From a regulatory perspective, dynamic tariffs have been encouraged by recent EU legislation. The EU Electricity Directive 2019/944 gave consumers the right to request an electricity contract with dynamic pricing, provided they have a smart meter. France transposed this into national regulations: the energy regulator CRE defined “offres à tarification dynamique” and required that large suppliers make at least one such offer available. In a July 2021 deliberation (CRE délibération n°2021-135), the CRE decided that any electricity supplier serving over 200,000 customers must offer a dynamic pricing option by 1 July 2023. The CRE specified that a qualifying dynamic offer must have at least 50% of the customer’s bill indexed on spot wholesale prices (day-ahead or intraday) and that prices must vary at least hourly in line with market fluctuations. This was aimed at giving all consumers the opportunity to benefit from wholesale price lows (and highs), effectively passing the market signal to end-users.

However, the energy crisis of 2021–2022, with extremely volatile and high wholesale prices, made fully dynamic contracts less attractive and potentially risky for average consumers (since bills could become unpredictably high during price spikes). To address this, the CRE in mid-2022 temporarily broadened the definition of acceptable dynamic offers to include “tarifs à effacement” or critical-peak pricing schemes. In other words, for a transitional period (2023–2026), suppliers can fulfill their obligation by offering peak/off-peak dynamic tariffs that encourage shifting usage without exposing consumers to the most extreme price volatility. These tariffs have predefined peak periods or limited “critical days” with higher prices, rather than pure hourly market indexation. They still provide a short-term price signal (often announced a day ahead) and reward flexibility, but the prices are capped or set in advance, protecting consumers from extreme wholesale spikes. The rationale was to mobilize consumer flexibility to help the electric system (especially in winter peaks) while avoiding the situation where an uninformed consumer on a fully indexed plan suddenly faces a €2/kWh hour. The legal framework in 2025 thus recognizes two categories: true dynamic pricing (hourly indexed to EPEX) and peak/off-peak demand response offers (so-called effacement offers). The CRE’s guidance is that between July 2023 and July 2026, large suppliers must offer at least one of either type, and after July 2026 only fully dynamic (hourly market-indexed) offers will count toward the obligation. This phased approach gives both consumers and suppliers time to gain experience with dynamic pricing. Additionally, the French Energy Code was updated to ensure that consumers have a right to these contracts and that suppliers provide clear communication and tools (mobile apps, alerts, etc.) to help customers understand and respond to price variations.

It’s important to note that dynamic tariffs shift the risk of wholesale price volatility onto the consumer. Regulators and consumer advocates have emphasized the need for transparency and education so that customers opting in understand that their bills will vary and could be high in peak periods. The upside is that savvy consumers can save money by adjusting usage to off-peak times – for example running appliances overnight or when wind output is strong – and these lower-price periods also often coincide with lower-carbon electricity (plentiful renewables). Thus, dynamic pricing is seen as a tool to empower consumers and support the energy transition by flattening demand peaks and integrating renewables. The downside is the unpredictability: without active management or automation, a household might see higher bills if they consume heavily at peak hours. For this reason, France’s rollout has been cautious. In fact, after the turbulence of 2022, no supplier in France currently offers a “pure” real-time hourly tariff to residential consumers in the strict sense (where the price directly follows each hour of EPEX with no limits). Instead, what’s available in 2025 are mostly the moderated dynamic (peak/off-peak) offers described below. As markets stabilize, we may see true real-time pricing offers reintroduced (the regulatory groundwork is in place for them), especially as the EU pushes for demand-response and as more home energy management technologies (smart thermostats, EV smart charging, etc.) become commonplace to automatically respond to price signals.

Major Electricity Providers Offering Dynamic Tariffs

Several major French electricity suppliers – notably those with large customer bases – have introduced dynamic or peak-period tariffs in line with the new regulations. Below is a list of prominent providers and their dynamic pricing offerings, along with brief descriptions:

• EDF (Tarif Bleu “Option Tempo” and “Zen Flex”): EDF, the main incumbent, offers Tempo as an option on the regulated tariff. Tempo is a long-standing dynamic formula that EDF has provided for decades, now counted as a dynamic/effacement offer. Under Tempo, EDF divides the year into color-coded days: 300 “Blue” days (low price), 43 “White” days (medium price), and 22 “Red” days (very high price). The high-price Red days typically occur during winter peaks and are announced a day in advance, and on those days the electricity price can be several times higher than normal. Within each day, there are also peak/off-peak hours (heures pleines/heures creuses) with different rates. This structure strongly incentivizes consumers to reduce or shift usage on the 22 critical peak days (for example, avoiding electric heating or EV charging during a cold spell Red day, when prices can exceed 0.70 €/kWh). Conversely, on Blue days the power is inexpensive (even cheaper than standard tariff), rewarding those who can time their consumption. EDF’s newer Zen Flex offer is a market-based plan with a similar idea: it features 345 days at a normal rate and 20 “Sobriété” days of very high prices per year. On Sobriety days (which EDF can call during peak demand periods), customers are expected to cut back usage to avoid expensive bills. Essentially, Zen Flex is EDF’s dynamic market offer (outside the regulated tariff) and is very much like Tempo in structure, but marketed to customers who have chosen EDF’s market rates. Both Tempo and Zen Flex leverage the Linky meter to measure when electricity is used, and EDF notifies subscribers of next-day color codes (via app, SMS, etc.). These EDF offerings are legally considered dynamic tariffs under CRE’s broadened 2023–2026 definition, because they provide a short-term price signal tied to grid conditions and day-ahead market tensions. They are well-suited for consumers who have some flexibility (electric heating that can be lowered, or the ability to shift heavy usage to nighttime or non-peak days). EDF reports that with Tempo, many customers do save significantly by adjusting their habits – it is often cited as one of the most cost-effective tariffs if one can avoid consumption on Red days.

• TotalEnergies (Offre “Heures Eco+”): TotalEnergies (formerly Direct Énergie) is one of the largest alternative suppliers. It launched Heures Eco+, a dynamic tariff that closely resembles EDF’s approach. The plan offers about 345 “Eco” days per year with favorable pricing and around 20 “Éclair” days with much higher prices (the term Jours Éclairs implies days of grid “alert” or high strain). On Eco days, the customer enjoys rates lower than the base tariff, while on Éclair days, particularly during certain peak hours (referred to as Heures de Vigilance in their communication), the kWh price is steeply increased. TotalEnergies alerts customers a day ahead if the next day is going to be an Éclair day. The structure (345/20 split) and purpose – encouraging reduction during perhaps ~20 critical days – is very much in line with Tempo/Zen Flex, just with TotalEnergies’ branding. This offer is available to residential consumers with Linky meters. By shifting usage away from the “vigilance” hours on Éclair days, consumers can avoid the high prices and thus benefit from a low price most of the year. TotalEnergies positions this as a way for customers to take control of their bill and act for the collective good (avoiding blackouts by smoothing peak demand). Heures Eco+ qualifies as an effacement-type dynamic offer under CRE rules and is one of the responses by TotalEnergies to the obligation to offer a dynamic tariff.

• Eni (Offre “Agile”): Eni, the Italian energy company operating in France’s retail market, introduced an electricity offer called Agile which is inspired by EDF’s Tempo. Eni’s Agile plan similarly divides the year into “normal” days (around 340–350 days/year) with a cheaper rate and “Agile” peak days (15 to 25 days/year) with a very expensive rate. The high-price days typically coincide with times of extreme demand (usually cold winter days). The goal is to strongly encourage Agile customers to reduce or shift their consumption on those peak days (for example, using alternative heating or postponing processes). In exchange, during the vast majority of the year (the other ~340 days) the customer enjoys a rate notably lower than standard. In essence, Agile Eni replicates the Tempo model under a different name, offering financial rewards for flexibility and contribution to demand management. It’s worth noting that as of 2025, Eni has suspended new subscriptions to Agile – likely due to market uncertainties or company strategy (Eni’s retail arm in France has undergone changes, rebranding to Plenitude etc.). Existing Agile customers, if any, may still be on the contract, but the offer is not actively marketed now. Nevertheless, Eni’s Agile was one of the compliant dynamic offers (effacement type) introduced to meet the regulatory requirement. It showcased that even newer entrants or foreign suppliers recognized the value of such tariffs in France’s market context. Agile’s structure (few very costly days vs many cheap days) is particularly attractive to those who can drastically cut usage for a limited number of days – for example, some small businesses might shut down energy-intensive equipment on those critical days to save money.

• Engie (“Dynamic’Clic” for large consumers): Engie (formerly GDF Suez) is another major player, especially for gas and for large industrial electricity clients. For residential customers, Engie had not (as of early 2025) launched a Tempo-like effacement offer, but it is expected to do so by the 2026 deadline. Where Engie has been active is in the industrial segment: Engie offers Dynamic’Clic, a wholesale-indexed contract for professional/industrial consumers with >250 kVA subscribed power (i.e. large sites). Dynamic’Clic is a fully dynamic pricing offer where prices are indexed to the wholesale market (both day-ahead and potentially intraday), and it includes advanced services for those clients. Because it’s targeted at sophisticated users, Engie doesn’t publish a standard price list; instead, each contract is customized (clients receive quotes, and can opt for various risk management options). The offer allows the company to set target price triggers, includes options like optimized billing of network charges (TURPE) and peak/off-peak management, and even green energy guarantees. Essentially, Dynamic’Clic lets large consumers benefit from wholesale price dips and manage their procurement proactively – but they also bear the risk of price spikes, so Engie provides tools and expert support (even services where Engie’s traders will lock prices on behalf of the client when favorable, as described in the contract options). This kind of dynamic tariff is common in the B2B sector and is fully in the spirit of the EU directive’s push for demand-response. For smaller businesses and households, Engie has so far favored more traditional fixed or indexed offers, possibly to shield vulnerable customers, but it will likely introduce a mass-market dynamic tariff as required. It’s notable that Engie, EDF, TotalEnergies, Eni, and some others each had to develop these offerings due to the >200k customer rule. As of 2025, Engie was essentially complying via its industrial dynamic offers, whereas EDF, Total, Eni rolled out the household-oriented peak day formulas.

Finally, it’s worth mentioning that smaller and new suppliers also played a role in dynamic pricing innovation. Barry Energy, a Franco-Finnish startup, launched France’s first true real-time hourly pricing offer in 2020, followed by E. Leclerc Énergie (the energy arm of the Leclerc retail chain) with a similar spot-indexed offer. These pioneers offered an app-based experience: customers paid the pure EPEX spot price hourly (no markup) and a fixed monthly fee, essentially getting electricity “at cost” and the ability to plan the next day’s usage with known prices. However, with the onset of the energy crisis, these offers proved unsustainable – Barry and Leclerc ceased their dynamic tariffs as wholesale prices skyrocketed in late 2021, and both companies eventually exited or pivoted. As of 2025, no strictly hourly pass-through offer is open to residential sign-ups, due to the lessons learned in the crisis. Instead, France’s dynamic pricing landscape is dominated by the regulated peak pricing schemes (Tempo, etc.) from the major providers listed above. These schemes are legally regulated and overseen by the CRE to ensure consumer protection and system benefits. They represent a cautious balancing of market principles with protective measures. Going forward, if wholesale markets stabilize and as consumers become more comfortable with dynamic pricing, we may see a return of true real-time offers (perhaps via tech-driven suppliers or even demand response aggregators). France is also exploring automation – e.g. smart appliances and EV chargers that could respond to price signals automatically – to help consumers take advantage of dynamic tariffs without constant manual effort. In summary, dynamic electricity tariffs in 2025 are an emerging reality in France, aimed at both empowering consumers and enhancing grid flexibility, but they are implemented in a controlled manner with an emphasis on critical peak management and clear communication of price signals.

Peak and Off-Peak Hours

France 2024 – Average Hourly Wholesale Electricity Price (EPEX)

1. Two clear price crests

The evening crest is not only higher but also wider (≈ 18:00‑22:00), signalling a longer period of tight supply.

2. Valleys where the grid is relaxed

• Pre‑dawn trough (04:00‑06:00) – 0.072‑0.079 € / kWh Baseline demand plus steady nuclear output means plenty of spare capacity.
• Mid‑afternoon dip (13:00‑16:00) – 0.076‑0.079 € / kWh Lunch‑time demand eases just as solar PV peaks, pushing prices down even lower than the classic “night‑time off‑peak”.

These two periods are consistently the least expensive and are ideal for time‑shifting flexible loads (dish‑washers, EV charging, industrial processes).

3. What the shape tells us about the French power mix

• Mid‑day solar oversupply – A growing PV fleet in southern France dumps cheap energy onto the market after noon, dragging prices below the long‑standing “heures creuses” night rate.
• Nuclear baseload – France’s nuclear plants run flat‑out most of the day, so wholesale prices are largely set by more expensive, flexible generators (gas, hydro) when demand spikes.
• Evening ramp challenge – When solar falls off a cliff around 18:00, the system relies on fast‑responding gas turbines and hydro reservoirs; their higher marginal costs drive the evening premium.

4. Practical take‑aways

5. Bigger picture for 2025 contracts

If you’re on a dynamic tariff, expect the evening premium to persist (and possibly widen) unless:

• additional nuclear units return from maintenance earlier than planned, or
• more demand‑side response (heat‑pump smart controls, V2G EVs) flattens the 18‑22 curve.

In short, those two price crests reflect the classic French daily demand profile amplified by variable renewables: cheap when the sun is high or everyone is asleep, expensive when the lights and ovens are on but the sun is gone.