This increase will have direct consequences on the bill of 11 million French people.
Slowly, but surely, the cold and winter are setting in, everywhere in France. Outside temperatures drop and, as a direct result, the heaters are turned on. For many French people, heating is done with gas and, for part of the population, this energy is also used for cooking. In total, around 11 million households use gas on a daily basis.
Like electricity, the amount of bills has continued to increase over the months. And this is not about to get better since the State intends to multiply by 4 a tax applied to this energy within a few weeks, from the beginning of 2025.
On a gas bill, several lines appear: subscription, consumption, transport tariff contribution and domestic consumption tax on natural gas. An indication is added to each of these descriptions: the amount of VAT. It is 5.5 or 20% depending on the title.
From 1is January, the VAT on the subscription should increase from 5.5 to 20%, i.e. a multiplication of the rate (almost) by four. This is an adjustment so that France is in compliance with what the European Union imposes.
Two examples to clearly understand the impact on the portfolio. In July 2022, Mireille subscribed to the “Gaz Energie guaranteed 3 years” offer offered by Engie. In the price list, he was told that his subscription would cost him around €20 per month during this period (the exact price varying depending on the number of days in the month). A price “excluding changes in taxes”, it is specified. As the State increases VAT on the subscription, this will be reflected in the invoice. From January, she will therefore pay €2.50 more each month, until the end of her contract at the end of June, i.e. €15 more than expected.
For his part, Thierry has held the “Gaz Adapt 1 year” contract, also with Engie, since November 2024. Here too, the promise of a fixed price is made outside of tax changes. With the increase in VAT, the monthly price of his subscription will increase by around 3 euros, or €30 more than expected until next November, the end date of his contract.
Bad news which could however be painless. If the price of gas per KwH falls during the year, the increase in VAT on the subscription would be offset. But nothing is certain yet, unlike electricity. Furthermore, for all households whose gas contract is expiring, you can expect to pay more for the subscription to this energy: in addition to VAT, all basic prices have skyrocketed. Checkout is still going to be painful.
