This is one of Changes to come in August who is most talked about. From next month, completed the VAT rate reduced to 5.5% On your electricity and gas bills. As a reminder, the value added tax (VAT) applied to energy in France is currently decomposed in this way: the consumption of electricity and gas is subject to the rate of 20%, while the fixed share linked to the subscription benefits from a reduced rate of 5.5%.
This distinction will soon be allowed. Wanting to comply with European law, France provides for the end of this differentiation in the 2025 finance law. Understand, from August 1, there will be only one rate of VAT which will apply, namely that of 20 %. This increase of 14.5 VAT points (20% – 5.5%) concerns both individuals and professionals and this “Whatever your KVA power (kilovoltampere, editor’s note) or your current contract», Engie says.
How does the increase in VAT work on the fixed share of your energy contract?
The ENGIE electricity supplier gives a concrete example. If your monthly subscription is 100 euros excluding taxes (HT), then with VAT on the fixed share at 5.5 %, you pay 105.50 all taxes included (TTC). With the new VAT rate of 20 % also applied to this fixed part, from August 1, 2025, the total amount passes to 120 euros including tax. Or an increase of 14.5 % including tax on the fixed part.
An increase in limited VAT until 2026?
However, on its site, the government explains that this movement will be compensated by two other operations: lowering of the excise (consumption tax) and Turpe (price for the use of public electricity networks). Thus, the excise will go from 33.70 euros/megawatt hour (MWH) to 29.98 euros/MWh on August 1, 2025. “The Turpe, which experienced an increase of 7.7 % in February 2025, will also drop by around 2.5 %“, Details the executive. Thus, the price per kilowatt hour will spend from 0.2016 euro to 0.1952 euros.
But, as pointed out Que-Choisir, There is a problem. “”This drop in the excise on electricity is only ensured until December 31, 2025. The amounts of these taxes are set at the end of each year by a ministerial decree and nothing guarantees that they will not start up in 2026“, Details the consumer association.
The homes that consume the least will be the most impacted
As indicated by the government on its website, this increase in VAT will be more visible for households with low consumption, the increase in the share of the subscription will indeed be “more visible than the decrease linked to consumption». Conversely, for households already having a big consumption, the price increase will be less impactful due to the drop in the price per kilowatt hour.
For its part, the constrained expenditure comparator lesfurets.com warns: “If you have taken out a fixed offer, you may see your energy bill increase. ” In question? The way the prices are presented. If the amount of the subscription is indicated excluding taxes, an increase in VAT will automatically affect the final amount paid by the customer. On its website, the ENGIE electricity supplier is clear: “The type of offer you have subscribed may have a significant impact on the amount of your invoice.” Some formulas are more suitable for your consumption than others. You only have a few days to check your contract, before increased VAT.
