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French consumers face an unexpected increase in their gas bill, despite a drop in prices on international markets. This paradox is explained by national adjustments which directly impact costs for homes. Indeed, significant increases in the subscription and VAT come to turn the household budget this summer. Let us see in detail the reasons for these increases and their implications on consumers.
Increase in gas subscription
From July 1, French consumers will face a 6 % increase in their gas subscription. This increase, going from 277 to 290 euros per year, is justified by GRDF by the need to maintain an aging distribution network. The network, made up of 200,000 kilometers of pipes, requires constant investments to provide reliable service. However, with a decrease number of subscribers, the maintenance costs are distributed on a lower basis, thus increasing the load for each user. This phenomenon, known as the “maintenance spiral”, obliges managers to review their rising prices to maintain the network in state.
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Impact of the increase in VAT on gas bills
August 1 will mark a new step in increasing costs for households: value added tax (VAT) applied to gas subscription will go from 5.5 % to 20 %. This measure, decided by the government, aims to compensate for other tax reductions. In practice, this increase in VAT will result in an increase in invoices, especially for small consumers, who will see their invoice climb between 0.3 % and 1 % depending on estimates. Foyers must therefore expect a heavier tax burden, even if certain adjustments could mitigate the impact.
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The paradox of the drop in world prices
While international markets record a continuous decrease in gas prices, this trend is not reflected on the bills of French consumers. This difference is explained by the fact that the costs linked to infrastructure and national taxation have a more direct impact on the final rates than fluctuations in international markets. For consumers, this situation highlights the importance of comparing the offers of the various suppliers and playing competition to lighten the bill. Indeed, some suppliers could offer more competitive prices or promotional offers to attract new customers.
Table of planned increases
| Element | Before July 1 | After July 1st |
|---|---|---|
| Annual subscription | 277 € | 290 € |
| VAT on the subscription | 5,5 % | 20 % |
Faced with these increases, French consumers must reassess their gas contract and consider changing supplier to optimize their energy expenditure. With this information, it is crucial to wonder: how can each home adapt their consumption to better manage these increases and reduce their long-term financial impact?
The author relied on artificial intelligence to enrich this article.
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