Rising gas prices: what taxes weigh on your bill

The Prime Minister, Jean Castex details, this Thursday evening his proposals to mitigate the effect of price increases in energy for consumers. The opportunity to measure the weight of taxes in the price of gas.

Why should you watch your gas bill closely?

Because the regulated price explodes. This price, set by the state, climbed 12.6% on average this Friday. For a gas-heated household consuming 14,000 kWh, the average annual bill has risen since January from €977 to €1,482.

How many gas subscribers are concerned by this tariff?

About five million. It directly affects 2.8 million households, which have taken out a contract at the regulated price with Engie, when the latter could offer it. Since 2019, he no longer has the right to do so. But the rise in the regulated tariff also indirectly affects customers who have subscribed to “a market offer” (unregulated) from Engie or its competitors.

Most (five million) escape increases, at least temporarily, because they subscribe to a "fixed price" offer. But some two million have subscribed to an “indexed price” offer. The operator then offers a price lower than the regulated tariff, but which increases or decreases according to the same terms as the latter. At this moment, he flies away.

What levers does the state have to stem the outbreak?

To answer that, let's go back to the invoice. The increase in gas is passed on each month to the price of kWh (the “consumption” part). It reflects the cost of the raw material on world markets. France is dependent on it because it imports 99% of the gas it consumes. As demand explodes due to the economic recovery, prices rise. For a 100 m² house in Nantes (Loire-Atlantique), heated by gas, the price per kWh, for example, went from €0.046 (including tax) to €0.075.

Here lies the first lever of the State to reduce the bill. It's about taxes. Consumption is subject to 20% VAT. When the price increases (for equal consumption), the yield of the VAT for the State increases. Hence calls from the opposition to waive part of this VAT. But does France, which is very indebted, have the means?

The other solution is to freeze the rise. Engie, which does not have the right to make a profit on the increase in kWh at the regulated rate, would then temporarily sell it at a loss. But this solution presents a legal risk.

What other gas taxes are there?

There is the CTA (the transmission tariff contribution) which finances part of the pension scheme for personnel in the electricity and gas industries. Or the TICGN (the domestic tax on the consumption of natural gas) which goes into the coffers of the State. More surprisingly, these two taxes are, themselves… taxed at 5.5% for the CTA and 20% for the TICGN.

It's a tax aberration, protests Antoine Autier, the head of studies at UFC-Que Choisir. The VAT on gas, electricity and fuel taxes brings in 4.6 billion to the State. This purchasing power should be returned to the consumer.

In total, taxes represent 23% of the price of gas. The raw material, 40%. The rest is transport, storage, distribution: so many items passed on once a year in July on the invoice.