Trystan Casey
Electricity prices have been a hot topic in recent years, with costs rising across the globe. In Europe, prices have been impacted by factors such as the geopolitical situation, national energy mix, and import diversification. So, how do two neighbouring countries, France and the UK, compare when it comes to electricity costs? Let's take a closer look at the average prices, energy suppliers, and unique factors influencing these two countries' electricity rates.
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What You'll Learn
UK wholesale costs
The UK's wholesale electricity costs are influenced by a range of factors, including the geopolitical situation, the national energy mix, import diversification, network costs, environmental protection costs, and severe weather conditions. These costs have been steadily rising over the last decade.
One of the main factors impacting UK wholesale electricity costs is the high wholesale cost of raw energy paid by suppliers. This price is often passed on to consumers, resulting in higher electricity prices for households. In spring 2025, the average UK household is expected to pay 27.03p/kWh, which is higher than the estimated price of 28.6p/kWh in the first quarter. With taxes included, the price per hour for UK households increases to 31.2p/kWh.
The UK's wholesale electricity costs are also impacted by the country's energy mix. The UK has committed to phasing out fossil fuels and increasing its reliance on renewable energy sources, which can affect the wholesale cost of electricity. Additionally, the UK's import diversification plays a role, as the country may need to import more energy if domestic sources cannot meet demand.
Another factor influencing wholesale electricity costs in the UK is the distribution network. The UK has a dense distribution network that connects consumers to the electricity system. The costs of maintaining and operating this network are passed on to consumers through their electricity bills.
To manage the rising wholesale costs, the UK has implemented various measures, such as price caps and interventions by regulatory bodies like Ofgem. These measures aim to protect consumers from excessive price increases and promote competition in the energy market.
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France's price cap
France's electricity price cap has kept rates low, although they are not the lowest in Europe. The price cap was implemented in October 2021, in response to the energy price crisis affecting all European member states. The crisis was driven by Russia's invasion of Ukraine and subsequent EU sanctions on Russian oil supplies, as well as record-low nuclear output in France.
The French government has prioritised protecting citizens from soaring bills amid high inflation rates across the eurozone. Finance Minister Bruno Le Maire announced in April 2023 that the electricity price cap would be upheld beyond 2023 and likely phased out over two years, stating that power prices had not "normalised" yet. This means that the price cap will remain in place until at least early 2025.
The price cap has blocked regulated electricity tariffs and has been accompanied by measures to reduce the impact of energy price surges on consumers. However, maintaining the price cap will strain the finances of EDF, the state-owned utility company, as it rushes to fix reactors affected by stress corrosion and hire and train staff for the construction of new nuclear plants.
France's electricity prices are comparable to those in the UK, which are expected to reach 27.03p/kWh in spring 2025. In the first quarter of 2025, Britons paid 28.6p/kWh, which was higher than in France. However, with taxes included, the prices per hour for UK households increase to 31.2p/kWh.
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UK taxes
The UK's electricity prices are among the highest in the world, with industry groups urging the government to reform the high taxes levied on electricity bills. These levies are said to disadvantage British industries and make it challenging for households to transition to lower-carbon heating systems. The UK's electricity prices are influenced by various factors, including wholesale costs, which are often passed on to consumers.
The UK government has introduced several measures to address the high energy costs and encourage the transition to renewable energy sources:
- Energy Profits Levy: A temporary levy introduced in May 2022 to fund cost-of-living support for families. It targets extraordinary profits of electricity generators, with a 45% tax rate on profits above the set benchmark of £75MWh.
- Investment Allowance: The government maintains the cash value of the levy's investment allowance to encourage companies to reinvest profits in the UK. The rate has been reduced from 80% to 29% for most investment expenditures, excluding decarbonisation.
- Decarbonisation Expenditure: Investments in carbon emissions reduction technology, such as wind turbines, qualify for an 80% investment allowance rate. This incentivizes the sector to reduce emissions and transition to low-carbon power.
- Oil and Gas Sector Taxation: The oil and gas sector pays a 40% headline tax rate on profits, including a 30% Ring Fence Corporation Tax and a 10% Supplementary Charge. This global competitiveness ensures a balance between taxation and investment.
- Long-term Energy Market Reform: The government is considering rebalancing gas and electricity prices to reduce the burden on consumers, with a focus on protecting households and businesses from volatile fossil fuel markets.
While these measures aim to address the high electricity costs in the UK, industry groups continue to advocate for further reforms to reduce industrial energy costs and promote a smoother transition to lower-carbon alternatives.
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French household electricity budget
The average French household consumes about 4760-4770 kWh of electricity per year. In 2023, the average electricity budget of a French household was €1300 per year or €110 per month. The average annual electricity cost in France ranges from €1057 to €1723, depending on the electricity provider and plan chosen. This works out to an average monthly power bill of about €108 per month.
The price of electricity in France is dependent on various factors, including the household's consumption habits, the characteristics of the home, and the chosen electricity supplier and plan. The cost of electricity transmission, or TURPE, is the same for all suppliers and depends on the meter power subscribed to, with a proportional increase for higher power. Additionally, there are taxes such as the Accise sur l'électricité tax, which is the biggest tax on electricity and is financed by all electricity consumers. VAT is also charged on electricity bills in France.
To manage their electricity budget, French households can compare competitive offers from different suppliers to find lower rates. They can also opt for offers with a percentage reduction or a fixed price. It is worth noting that electricity prices in France tend to change twice a year, in February and August, so households should be prepared for potential increases or decreases in their electricity costs.
Overall, despite recent increases in electricity prices across Europe, France's price cap has helped maintain relatively low electricity rates for households.
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EDF tariffs
EDF Energy offers a range of tariffs for its customers in the UK and France. In the UK, EDF is Britain's biggest generator of zero-carbon electricity. The company offers a range of tariffs, including standard variable tariffs, which are subject to a price cap set by the energy industry watchdog, Ofgem. This cap is reviewed every three months and can fluctuate depending on the wholesale cost of energy. EDF also offers exclusive tariffs for its Export customers, such as the Export Exclusive 12m V2 export tariff.
For customers in France, EDF offers the Tarif Bleu, which is a regulated sales tariff for electricity set by public authorities. This tariff includes off-peak pricing during the night, generally between 10 pm and 6 am. EDF advisers are available to assist French customers from 8 am to 6 pm, Monday to Friday.
Switching to EDF is a straightforward process. New customers can call the company to find the best tariff for their home, while existing customers can manage their energy supply through their online account. EDF also provides exclusive offers and referral bonuses to help customers save money on their energy bills.
Overall, EDF Energy provides a range of tariff options for its customers in the UK and France, with varying rates and features to meet different needs and preferences.
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Frequently asked questions
As of June 2025, the average price of electricity per kWh in France is €0.2016, while in the UK, the average household is expected to pay 27.03p/kWh. This indicates that electricity is cheaper in France than in the UK.
France's price cap has kept rates low, although they are not the lowest in Europe. Additionally, consumers have a choice between regulated rates and market offers, with some providers offering prices up to 20% cheaper than the EDF Tarif Bleu.
Electricity prices in France typically change twice a year, in February and August.
The price of electricity in France is influenced by various factors, including the level of insulation in homes, wholesale prices, and government interventions. Additionally, the timing and duration of off-peak hours, as well as the power supply needs of a household, can impact the cost of electricity.
