This European rule which will make your subscription jump from August 1, 2025

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The time offer at -20 % (HT) compared to the this european rule which will regulated rate

. For example,

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As of August 1, 2025, the price of your electricity subscription will experience an increase of around 13%. Furthermore, This increase is the direct consequence of a European court decision which obliges France to apply the same VAT rate on the subscription. For example, to the consumption of electricity. Moreover, The fixed share of your invoice will thus see its VAT rate pass from 5.5 % to 20 %. Therefore, This measure, although partially offset by a slight drop in the price per kilowatt hour (kWh), will not be neutral. Nevertheless, It will particularly penalize small consumers and second homes, whose bill will increase. For example, Explanations on this tax change imposed by Europe.

The end of a French tax exception – This european rule which will

The increase in the subscription price is not a political choice of the moment. Furthermore, but this european rule which will the conclusion of a long legal saga. For example, France has long applied a tax exception: a reduced VAT rate to 5. Consequently, 5 % on the subscription (the fixed share of the invoice), and a normal rate to 20 % on consumption (the variable share).

This fiscal practice, known as “ventilation”, was deemed contrary to European law. Nevertheless, The jurisprudence of the Court of Justice of the European Union. However, especially in its 2018 Stadion Amsterdam judgment, believes that elements of one and the same inseparable economic service must not be artificially decomposed to be taxed differently.

The service consisting of a single economic service service must not be artificially decomposed so as not to alter the. For example, functionality of the VAT system.

The subscription and consumption of electricity being considered as such a “single service”, France had to comply. For this european rule which will example,

How to compensate for the increase in VAT?

VAT increase: what consequences on French households? – This european rule which will

For the household budget, this purely fiscal change will have a double face impact. For example, If All subscriptions will increase on August 1. 2025this increase will be partly amortized by a drop in the price of each kilowatt hour (kWh) consumed.

From August 1. 2025: + 13 % on the electricity subscription – This european rule which will

The most visible change for all households is The high increase in the price of the subscriptionthe fixed share of the invoice. This increase is the mechanical consequence of the alignment of the VAT rate, which goes from 5.5 % to 20 %.

For a 6 kVA counter. the most common in France, this translates into an additional cost of more than € 22 per yearthe annual subscription going from € 164.64 to 187,17 €.

Here. according to the exclusive this european rule which will calculations of Selectra, the evolution of the price of the subscription from August 1ᵉʳ 2025 as a function of the optional option:

Still according to Selectra, here is the evolution of the price of the subscription for households as optional full hours / off -peak hours:

A drop in the price per kWh to compensate for the increase

In order to alleviate the shock of this increase on the fixed share, the government has decided to act on the variable part of this european rule which will the invoice. To do this, he chose to lower another tax, theIncrease on electricity (formerly CSPE). This tax, which applies to each kilowatt hour that you consume, will therefore be slightly reduced.

This decrease. combined with a slight decrease in the rate of use of public electricity networks (Turpe), the “toll” of energy delivery, will allow to Reduce the price per kWh by around 2%. The objective is to make the measure as neutral as possible for average consumers.

Here is exclusively the evolution of the price per kWh of electricity from August 1ᵉʳ 2025:

• Base optional. the price per kWh will drop by 2.21 %from € 0.2016 to € 0.1971;
• In full hours, the price per kWh will drop by 2.1 %going from € 0.2146 to € 0.2101;
• In off -peak hours, the price per kWh will drop by 2.66 %going from € 0.1696 to € 0.1651.

this european rule which will

Find a cheaper supplier!

Get your comparison by phone with Selectra

The time offer at -20 % (HT) compared to the regulated rate

.

A cheaper fixed price offer!

Who will be the big losers of this tax reform?

This rebalancing between subscription. consumption is not a simple technical operation, it draws a new line of fracture between electricity consumers. The logic is simple: the lower your consumption. the higher the increase in the subscription will weigh in your bill, without being offset by the drop in the price of kWh.

Secondary residences and small consumers on the front line

Some profiles will undergo this modification head on. Large losers are this european rule which will undoubtedly households which have low annual electrical consumption:

• Secondary residence owners: It is the heavily impacted category. Paying for a year subscription for a very low consumption. or even a large part of the time, they will undergo the increase on the fixed share without any benefit on the variable part.
• Small accommodation with low consumption: This includes studio students. people living alone, and more generally all households whose heating and hot water are not electric. Their low consumption (limited to lighting. household appliances) will not allow them to save sufficient savings on the KWH to counterbalance the increase in their subscription.
• The most economical households: Paradoxically. the most virtuous households, which make constant efforts to reduce their energy consumption, will also be penalized by this reform which increases the fixed costs.

The average French household. with its 6 kVA counter and an annual consumption of 4,200 kWh, will see its electricity bill this european rule which will increase by 0.4 % from August 1, 2025.

Calculate the exact impact on your invoice

The above profiles give you a general trend, but each home is unique. To find out the precise development of your annual budget, to the nearest penny, use our exclusive simulator.

Just indicate your annual consumption and the power of your meter to get your personalized result.

Find a cheaper supplier!

Get your comparison by phone with Selectra

The time offer at -20 % (HT) compared to the regulated rate

.

A cheaper fixed price offer!

How to compensate for the increase in VAT on the electricity subscription?

Since The increase in VAT will apply to all contractsthe only room for maneuver for the consumer is to compete.

Many market offers offer more competitive prices than the regulated price of EDF. By choosing a supplier with a lower subscription price. KWH, the savings made can largely compensate, or even completely cancel, the additional tax cost.

So it’s the ideal moment for Compare suppliers ! Here is the list of the most competitive electricity suppliers today. Special mention to Primeo energywinner of the group purchase of Selectra. which offers prices blocked until the end of 2026 as well as 20 % reduction on the price per kWh of electricity compared to the regulated price of EDF.

this european rule which will

Simulations made for domestic consumption of 6000 kWh per year and a power of 6 kVA in Lyon. Find out more about our selectra score.