The decision to align VAT on electricity subscriptions at the standard rate of 20% is not a French whim. It results from a European directive that imposes the application of the full rate on all inseparable elements of a single service, in this case the supply of electricity. Until now, the electricity bill benefited from a reduced VAT rate of 5.5% on the fixed portion (the subscription), while consumption was already taxed at 20%. This differentiation, long justified to protect purchasing power, is no longer in accordance with European law: the Court of Justice of the Union now requires that all inseparable elements of the same service be subject to the same VAT rate.
+13% on the subscription
For the 25 million households concerned (EDF customers with regulated tariffs and customers with indexed offers), the increase is tangible: the annual subscription increases, on average, from €164.64 to €187.17 for a 6 kVA meter, an additional cost of more than €22 per year. This 13% increase will affect all residential customers, regardless of their offer or supplier.
However, the pill is softened by a reduction in two other lines of your bill. On the one hand, the electricity tax (formerly TICFE) is decreasing from €33.7 to €29.98 per megawatt-hour consumed. On the other hand, the TURPE (Public Electricity Network Usage Tariff), which finances network maintenance, is falling by 2.5%. These two reductions reduce the overall cost per kWh. Against all logic, this change will have the direct consequence of favoring large consumers, to the detriment of small ones.
4900 kWh/year
The combined effect of these measures creates a clear dividing line. For those who consume less than 4900 kWh per year, the increase in the subscription outweighs the decrease in the price per kWh, and the bill climbs. This is the case for the majority of French households, whose average consumption is 4200 kWh/year. On the other hand, beyond 4,900 kWh/year, the decrease in the unit price offsets, then exceeds, the increase in the subscription. A household consuming 11,000 kWh/year will see its annual bill decrease slightly. The higher the consumption, the greater the impact of the decrease in the price per kWh, cushioning the increase in the subscription.
How do you know if you are affected?
Simply check your annual consumption on your bills or via your supplier's customer area. If your meter displays more than 4,900 kWh/year, the reform will work in your favor. Otherwise, prepare for a moderate, but inevitable increase.
This reform comes as the regulated electricity tariff fell by 15% in February 2025, after two years of soaring prices. The government justifies the VAT increase by this price lull, while reiterating the need to comply with European law and to shore up public finances. However, energy has seen a series of recent increases: the excise duty on electricity had already been increased by 60% at the start of 2025, and the network usage tariff (TURPE) has seen two successive increases.
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