Electricity and Gas: deciphering the main energy taxes for businesses

CTA, CSPE, TICFE, TICGN, TICGN, VAT, excise duties: these acronyms align with energy bills. But what are these taxes on electricity and gas that can represent up to a third of your bill?

What are they used for? What are their amounts for businesses in 2024 and how can they limit their impact on your energy budget?

SirEnergies gives you the keys to understanding energy taxation and deciphering your electricity and gas bills.

What are the taxes on the electricity bill?

Businesses pay Three taxes on electricity: the transport tariff contribution (CTA), the excise on electricity and VAT. Here are their calculation methods and the rates applicable in 2024.

The transport tariff contribution (CTA)

The transport tariff contribution (CTA) has existed since 1^Er January 2005. She finances the specific rights to old-age insurance employees covered by the pension scheme for the electricity and gas industries before 2005. Since that date, staff have been attached to the general regime.

The CTA is due by all final consumers of electricity. In order to ensure fair payment, its amount does not take into account the volume of electricity consumption. The CTA is calculated in Percentage of Tariff for the use of public electricity networks (TURP).

Unchanged since the 1^Er August 2021, CTA rates on the electricity bill are fixed by the State, by ministerial decree. They represent:

• 21.93% of the fixed portion of the tax-free delivery rate for consumers connected to the public distribution network Enedis
• 10.11% of the fixed portion of the freight rate excluding tax for companies connected to the transport network RTE

Excise duty on electricity (ex TICFE/CSPE)

Some key dates:

• Since the 1^Er January 2016, the CSPE contribution (contribution to the public electricity service) has been replaced by an internal tax on final consumption of electricity (TICFE), more robust and extensive, but retains its initial name, CSPE.
• From the 1^Er February 2017, it is no longer allocated to the “Energy Transition” Special Assignment Account (CAS).
• In January 2022, the departmental tax on final consumption of electricity (TDCFE) has been abolished, merged into CSPE/TICFE. This merger also resulted in the abolition of the municipal tax on final consumption of electricity (TCCFE) in January 2023.
• Since the 1^Er January 2022, Excise duty on electricity Is the name given to Combining two taxes : The CSPE And the TICFE. With this reform, France has come into compliance with the 2020 European directive governing the general excise regime. These are indirect taxes, collected on the sale and use of energy products, such as electricity, natural gas and fuels.

Regulated by the new Tax Code on Goods and Services (CIBS), the excise duty on electricity is collected by energy suppliers and paid to the Directorate-General for Public Finances (DGFiP).

The excise on electricity is used to finance the development of renewable energies, but also solidarity with the Energy check and the budget of National Energy Ombudsman.

• 32.0625 €/MWh for households (power ≤ 250 kVA) and similar (economic activities with power ≤ 36 kVA)
• 25,6875 €/MWh for small and medium-sized businesses (VSEs, SMEs, artisans... 36 kVA ≤ power ≤ 250 kVA)
• €22.50/MWh for high power (power greater than 250 kVA)

However, in reality, these rates have never been reached yet. Their gradual increase was interrupted in 2022 by the State to contain the rise in electricity prices in a context of energy and inflationary crisis. Until 31 January 2024, the excise duty on electricity was reduced to €0.50/MWh for businesses and €1/MWh for individuals.

The finance law for 2024 marked the end of this tariff shield in France. For 2024, the rate ofexcise on electricity amounts to €20.50/MWh for businesses.

Value added tax (VAT)

Like all products and services in France, electricity is subject to value added tax (VAT). This indirect tax is paid by final consumers and paid to the State by electricity suppliers.

Two VAT rates coexist :

• A rate reduced to 5.5%, applied to the subscription price and the amount of the transport rate contribution (CTA).
• A normal rate of 20%, applied to the price of electricity consumption and the amount of excise duty on electricity.

What are the taxes on the gas bill?

Natural gas taxes are based on electricity taxes. We find on the Business gas bill the transport tariff contribution (CTA), VAT and excise on natural gas, a cousin of excise duty on electricity.

The transport tariff contribution (CTA)

The CTA for natural gas is based on same principles as the CTA for electricity. This contribution finances the old-age insurance scheme for employees in the electricity and gas industries who retired before 2005. It is paid by all final consumers and its amount does not depend on the quantities of gas consumed.

The amount of the CTA on gas is calculated in Percentage of the rate for using natural gas transmission and distribution networks (ART/LATE).

Set by the State in July 2021, the CTA rates on the gas bill represent:

• 4.71% of the fixed portion of the duty-free delivery rate for natural gas transport services.
• 20.80% of the fixed portion of the duty-free delivery rate for natural gas distribution services.

Excise duty on natural gas (ex TICGN)

The excise duty on natural gas has been used since the 1^Er January 2022 the old one domestic tax on the consumption of natural gas (TICGN).

Like the excise on electricity, the excise on natural gas is paid by all final consumers then paid by natural gas suppliers to the tax service. This tax contributes to the financing of renewable energies and energy aid.

The excise tariff on natural gas is set by article L312-36 of the Code of taxation on goods and services. It evolves according to the quantities of biomethane injected into the gas network. For 2024, the rate is €16.37/MWh.

Value added tax (VAT)

Like electricity, natural gas is subject to value added tax (VAT).

Two VAT rates coexist:

• A rate reduced to 5.5%, applied to the subscription price and the amount of the transport rate contribution (CTA).
• A normal rate of 20%, applied to the price of gas consumption and the amount of excise duty on gas.

Can businesses benefit from an exemption on electricity and gas taxes?

If the CTA is paid by all consumers without exception, excises on electricity and natural gas give rise to exemptions and reduced rates. Businesses subject to VAT can also deduct the VAT paid on their electricity and natural gas bills.

Excise on electricity: discounts and exemptions

The Code of Taxation of Goods and Services lists the uses of electricity that entitle, under certain conditions, to exemptions and reduced rates.

Thus, businesses whose electricity consumption is intended may be exempt from excise duty. :

• For dual use (metallurgical processes, chemical reduction, electrolysis).
• To manufacture non-metallic mineral products.
• To produce electro-intensive goods for which the price of electricity represents more than 50% of the total cost.
• To produce energy products.
• To produce electricity or to maintain production capacity.
• To produce electricity on board ships and boats.

An exceptional reduction in rates of €0.50/MWh also applies :

• To businesses that consume large amounts of electricity, depending on their level of electro-intensity.
• Guided transport of people and goods, and collective road transport of people.
• To digital data storage centers.
• To operators of aerodromes open to public air traffic.

It is up to each company to check its eligibility. If you think you are entitled to a reduction or exemption from the excise on electricity, you must send your request to your energy supplier. The certificate can be downloaded from The website of the Public Treasury.

Excise duty on natural gas: discounts and exemptions

Businesses can benefit from exemptions from excise duties on natural gas, provided they meet the eligibility conditions.

To benefit from it, they do not have to Do not use natural gas only as fuel. Gas consumption should be intended for:

• Dual use (metallurgical processes, chemical reduction, electrolysis).
• Manufacture non-metallic mineral products.
• Generate electricity.
• Produce energy products.

A special excise tariff on natural gas also applies :

• With natural gas used as fuel in the agricultural sector.
• On biogas fuel not injected into the network.
• To companies that consume large amounts of energy, which are subject to the quota market for greenhouse gases, or exposed to the risk of carbon leaks.

To benefit from an exemption or a reduced tariff from the excise duty on natural gas, you must send the request to your energy supplier, by completing the Cerfa certificate n° 16197*02.

What will the finance law for 2024 change on business energy bills?

The finance law for 2024 has a strong impact on business energy bills, by putting an end to the tariff shield in France. Never in five years has energy taxation been the cause of such an increase in electricity and gas prices.

So, since the 1^Er February 2024 and until January 31, 2025, pursuant to the decree of January 25, 2024, the excise duty on electricity is increased. It represents:

• €20.50/MWh for small and medium-sized businesses (VSEs, SMEs, artisans...)
• €20.50/MWh for high power.
• €21/MWh for households and similar persons.

As for the excise duty on natural gas, it almost doubled in 1^Er January 2024, going from €8.37/MWh to €16.37/MWh, which is the ceiling authorized by the regulations.

With this increase in excise duties, the State intends to make up for the shortfalls due to the freezing of the TICGN since 2018 and the CSPE/TICFE since 2022. Their gradual increase was then stopped to respond to the Yellow Vest protests, then counter price inflation during the Covid-19 crisis and the war in Ukraine.

To limit the impact of increased taxes on your energy bills, choose the electricity and/or gas supply contract that is most suitable for your business.

SirEnergies supports and advises professionals, small businesses, SMEs and large companies. Based on the analysis of your electricity and gas consumption, we offer you the most relevant energy supplier in relation to your needs and your energy purchase strategy.