In an unstable political context, the 2025 Finance Bill (PLF 2025) was definitively adopted on 6 February by the National Assembly and the Senate, two months behind schedule. The 2025 finance law marks a change in France's energy taxation.

After several years of tariff shield to counter inflation and preserve purchasing power, tax increases are announced.

What does the 2025 finance law on electricity and gas taxation change? What are the impacts for businesses? How can these changes be prevented? Our advice to anticipate and protect your energy budget.

What are the taxes on electricity and gas in France?

Electricity and gas bills consist of three components. The final amount includes the cost of energy, the subscription price, and the three taxes regulated by the state.

Excise duties on electricity and natural gas

Excises on electricity and natural gas appeared in 2022 on electricity and gas bills. However, these are not new taxes. The excise duty on electricity includes the CSPE (contribution to the public electricity service) and the TICFE (internal tax on the final consumption of electricity). As for Excise duty on gas, she replaces the TICGN (domestic tax on the consumption of natural gas).

The revenue collected by the State is used to finance national energy policies, solidarity and the energy transition. In particular, they are invested in the development of renewable energies, the energy check or high-efficiency cogeneration.

The transport tariff contribution (CTA)

Applied to the electricity and gas bill, the transport tariff contribution (CTA) finances the old-age insurance system employees in the electricity and gas industries who retired before 2005.

The CTA is calculated in Percentage of the delivery rate, namely the TURPE (tariff for the use of public electricity networks) for electricity and the ATRT/ATRD (tariffs for access by third parties to transport and distribution networks) for gas.

Value added tax (VAT)

Considered consumer products, electricity and gas are subject to VAT. Up to 1^Er August 2025, two rates coexist:

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

What does the 2025 finance law change?

The 2025 Finance Act includes several provisions relating to electricity and gas taxes. They result in an increase in electricity and gas bills for consumers.

The increase in excise duties on electricity

The 2025 Finance Act confirms the increase in excise tariffs on electricity, linked to the disappearance of the tariff shield.

All private and professional consumers are concerned. But The evolution trajectory of the excise duty on electricity varies according to the power subscribed :

• Powers less than 36 kVA are the most affected: At 1^Er February 2025, the increase is 60% compared to 2024. A decrease of 11% is expected on 1^Er August.
• For powers between 36 and 250 kVA, The increase in excise duty is 28% in February compared to 2024, before a slight decrease of 11% in 1^Er August.
• La Rise is continuous and progressive for powers greater than 250 kVA, with a total increase of 26% in 1^Er August compared to 2024.
• The reduced rates of €0.5/MWh are maintained for eligible businesses (electro-intensive productions, collective transport of people and goods, data centers, etc.).

Table showing the evolution of excise tariffs on electricity:

Electricity excise rates

1^Er February 2024 to January 31, 2025 (*)

Electricity excise rates

1^Er February to July 31, 2025

Electricity excise rates 1^Er August 2025 to December 31, 2025 (**)

Households and assimilated

Power < 36 kVA

€21/MWh

€33.70/MWh

€29.98/MWh

SMES

Power from 36 to 250 kVA

20.5 €/MWh

€26.23/MWh

€25.79/MWh

“High power” consumers

Power > 250 kVA

20.5 €/MWh

€22.50/MWh

€25.79/MWh

Consumers at reduced rates

€0.5/MWh

€0.5/MWh

€0.5/MWh

(*) The rates take into account the price shield activated until January 31, 2025.

(**) The rates of 1^Er August to December 31, 2025 include the normal excise tariff on electricity adopted by the 2025 Finance Law (€25.09/MWh for households and similar persons and €20.90/MWh for other categories) and the new increase of €4.89/MWh intended to finance public service missions in non-interconnected areas (Corsica, overseas territories).

The reduction in the excise duty on natural gas

Fixed at €16.37/MWh in 2024, the excise duty on natural gas evolves to 17.16 €/MWh from 1^Er January to July 31, 2025. Regulated by the decree of December 26, 2024, this new rate includes inflation.

This increase will be short lived. The 2025 Finance Act in fact acts on the Reduction in the excise duty on natural gas from 1^Er August 2025. The rate is set at €15.43/MWh for the second half of the year. As with the excise duty on electricity, the tax includes the normal rate provided for in the 2025 Finance Law (€10.54/MWh) and the new increase to ensure public service missions in non-interconnected areas (€4.89/MWh).

The abolition of the reduced VAT rate on subscriptions

The adoption of the finance law validates the deletion, starting on 1^Er August 2025, of the reduced VAT rate at 5.5% on electricity and gas bills.

By harmonizing VAT rates on electricity and gas to 20%, France is in line with European law. Indeed, Europe imposes uniform VAT rates for the same service.

What are the impacts of the 2025 Finance Act on businesses?

Tax increases will have a mostly negative effect on businesses' electricity and gas bills.

Protected since 2022 by the tariff shield, consumers are now experiencing its disappearance. The fall in excise duties on electricity and gas in the first half^Er August 2025 does not compensate for its abolition, nor the increase in VAT, nor the increase in TURP Since the 1^Er February. With the abolition of the reduced VAT rate alone, subscriptions will increase mathematically by 14.5% in 1^Er August 2025.

By reducing margins, tax increases, if not anticipated, can threaten the competitiveness of businesses and destabilize the most fragile ones.

How can you limit the impact of rising taxes on your energy bills?

There is no need to deny it. Rising taxes on electricity and gas is bad news for consumers. But the good news is that businesses can take action to limit the impact on their energy budget.

Optimize your energy contracts

First way to counter the increase in VAT: Negotiation of the subscription part electricity and gas contracts. Several elements can be optimized:

• Management fees by comparing the rates applied by the various energy suppliers.
• The TURPE by adapting the subscribed power and the routing price formula (FTA) to the needs of the company: seasonal division, version of use (short use - CU, medium use - MU or long use - LU),...
• THE ART/ART : some natural gas suppliers guarantee a fixed price for the duration of the contract, regardless of adjustments made by the government.

Buying energy is a key moment to optimize contracts as much as possible. The company can then negotiate the offers but also the pricing options, the methods and periodicity of price changes, contractual obligations or even the costs.

Conduct an energy audit

An energy audit is the first step in an effective energy strategy. Complete and detailed, the audit provides a accurate assessment of the energy situation of the company. The analysis of consumption makes it possible to understand the main sources of expenditure and the dysfunctions.

By identifying the most expensive positions, the company determines the most effective energy saving levers to define a tailor-made action plan.

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Focus on self-consumption and renewable energies

Self-consumption its own energy production reduces the consumption of electricity and gas from public networks. While securing supplies, self-consumption protects against the volatility of market prices and rising taxes.

From rooftop solar power plants to the heating network, including heat pumps and geothermal energy, many renewable energies are now available to businesses. The statement on the bill is final. Feedback validates a 20% to 40% reduction in the energy budget.

Adopting energy efficiency and sobriety

The cheapest energy is the one you don't consume. The company can reduce its total energy consumption by encouraging the actions of sobriety and by investing inee (thermal insulation of buildings, replacement of energy-consuming equipment,...).

The reduction in consumption has a immediate and visible effect on all components of the bill. It results in the reduction of many costs: the variable costs related to the real consumption of electricity and gas, the variable share of delivery rates and the costs related to taxes (in particular VAT).

Optimizing electricity and gas taxes

Optimizing electricity and gas taxes is more difficult, but not impossible. Exemptions and reductions in excise duties are very strict.

To benefit fromExemption from excise duties on electricity, it must be used to produce electricity or to be self-consumed (small producers). As for reduced attractive rates at 0.5 €/MWh, they are reserved for certain restrictive categories: manufacturers using electricity for dual use (metallurgical processes, chemical reduction, electrolysis), electro-intensive companies, collective transport of people and goods, etc.

To take advantage of reductions or exemptions from excise duties on gas, it must be intended for dual use (metallurgical processes, chemical reduction, electrolysis) or for the production of non-metallic mineral products, energy products or electricity. One special excise tariff applies to certain sectors: agricultural sector, biogas fuel not injected into the network, companies that consume large amounts of energy (and are subject to the greenhouse gas quota market or exposed to the risk of carbon leaks), etc.

Get support from an energy purchasing expert

Buying electricity and gas well is a demanding process. The suppliers are numerous, the offers are complex, the prices volatile and the Market that is difficult to predict. Optimizing contracts requires complex analyses and calculations to optimize power and delivery formulas. It also requires specialized expertise, both technical and financial and legal.

There is no miracle recipe for optimizing your electricity and gas bills. Everything depends on the company, its strategy, its fiscal resilience and its energy choices. An expert helps to build a personalized and efficient energy strategy, perfectly aligned with needs.

The 2025 finance law validates the government's change of direction. After a period of forced stability to counter inflation, the reality is clear: energy taxation is increasing. This increase in taxes poses a fiscal challenge for businesses. But, as restrictive as it is, it is an opportunity to accelerate their energy transition. Adopting proactive energy management? Develop renewable energies? Choosing low-carbon technologies? Encourage energy sobriety? Investing in energy efficiency? Meeting these ambitions means both protecting the environment, but also concretely reducing your electricity and gas bills.

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