Will invoices are soaring on August 1?

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Will invoices soaring august 1?:

Decryption – To comply with European Union standards, the government will fall under 5.5% to 20% VAT on energy subscriptions. Consequently, A compensated increase in part by the drop in consumption prices.

Change on gas and electricity bills from the French from August 1. Additionally, Consequently, As provided for in the 2025 budget and to comply with European law, the government will fall within 5.5% to 20% VAT on subscriptions. Similarly, France has so far applied 5.5% reduced VAT to the fixed share of the subscription and a VAT “normal” on consumption. Meanwhile, This practice is prohibited by the European Union, which requires uniform VAT levels for the same service.

What make consumer invoices flare? Moreover, Fearing such a scenario, the CGT Energy had urged the government in mid-July to give up this will invoices soaring august 1? increase. Moreover, “We could level [cette fiscalité] from below, therefore at 5.5% on the entire bill ”had estimated Fabrice Coudour. Therefore, secretary general of the FNME-CGT, the first union of the branch, during a press conference organized in the Senate. “Going from 5.5% VAT to 20% means passing electricity and gas from a basic necessity to a merchant property”, had he added.

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An increase of 1 euro per month for the smallest consumers

Faced with these accusations, the government wanted to reassure the French: “The movement is neutral on average for the energy consumer”explained to AFP the Ministry of Industry, evoking compensation. First of all. there is a drop in the variable share of the bill, that is to say consumption, due to a drop in energy excise. will invoices soaring august 1? This “kWh tax” collected by energy suppliers and donated in the state will drop by 11% on August 1. There is also, for electricity specifically, a reduction of 2.5% of the turpe, the access rate paid by all users of the distribution network to pay Enedis and RTE.

The CGT retorts that this compensation is not worth “For the most precarious households. which have a minimum of consumption”and whose subscription represents a large part of the invoice. This is in particular what a study conducted by the energy advisor Hello Watt reveals. Small consumers would be the most penalized by the increase in VAT. since the electricity bill of households consuming 500 kWh per year would increase by 5.6%. Or an increase of around 12 euros per year, or 1 euro per month … sustainable, a priori.

Electricity consumers beyond 3. 300 kWh per year will be spared, will invoices soaring august 1? even winners, and this is the whole paradox of the evolution of prices on August 1. It is indeed from the 3,300 kWh threshold that the drop in consumer price neutralizes the price of the subscription. The average electricity consumption per person per year being 2223 kWh. according to Engie, a home of two people with a consumption of more than 4000 kWh will therefore see its invoice decrease. “The biggest consumers will even benefit from a slight drop in their bill (-1.5 % for a consumption of 10,000 kWh/year)”Preécise HELLO watts.

On the other hand. for gas, even if the impact is stronger for small consumers, all profiles will see their bill increase. But here again. the increase will be minimal, of the order of 15 to 35 euros per year, according to the estimates of Hello Watt.

Will invoices soaring august 1?

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