This increase will have direct consequences on the bills of 11 million French people.
Slowly but surely, the cold and winter are setting in, everywhere in France. Outdoor temperatures are dropping and, as a direct consequence, the heaters are being turned on. For many French people, heating is done with gas and, for a 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 quadruple a tax applied to this energy in 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. Each of these headings is accompanied by an indication: the amount of VAT. It is 5.5 or 20% depending on the heading.
As of January 1, the VAT on the subscription should increase from 5.5 to 20%, i.e. an increase in the rate (almost) by four. This is an adjustment so that France is in compliance with what the European Union imposes.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000Two examples to help you understand the impact on your wallet. In July 2022, Mireille signed up for the “3-year guaranteed gas energy” plan offered by Engie. In the price list, she was told that her subscription would cost her around €20 per month during this period (the exact price varying depending on the number of days in the month). A rate “excluding “changes in taxes”, it is specified. As the State is increasing VAT on the subscription, this will therefore be reflected in the bill. Starting in 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 planned.
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 rate is made outside of tax changes. With the increase in VAT, the monthly price of his subscription will increase by around €3, or €30 more than expected until next November, the end date of his contract.
Bad news that could nevertheless 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 about to expire, we must expect pay more for the subscription to this energy: in addition to VAT, all basic prices have skyrocketed. The transition to the checkout will still be painful.