Livret A, VAT increase on gas and electricity, Linky meter... What's changing on August 1st
Illustration of the Booklet A. GILE MICHEL/SIPA
It's summer, but several changes are expected starting this Friday, August 1st. The rate for the Livret A and the Livret de développement durable et solidaire (LDDS) savings accounts will drop from 2.4% to 1.7%, and VAT will increase from 5.5% to 20% on electricity and gas subscriptions. And what about the Linky meter? If you haven't installed it, beware of additional costs. Here's an overview of these main changes.
• The rate of Livret A and LDDS is fallingThe interest rate on the Livret A and the Livret de développement durable et solidaire (LDDS) will drop from 2.4% to 1.7% this Friday, as announced on July 16, a decision taken due to the relatively low level of inflation in the first half of the year.
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This drop is unprecedented in its scale since 2009. It is the second this year, since the Livret A rate, which was still at 3% at the start of 2025, had already been reduced to 2.4% on February 1. The Livret A rate is calculated every six months, mid-January and mid-July, based on the average inflation rate (excluding tobacco) and an average interbank interest rate dependent on European monetary policy, over the past six months. However, these two elements have been falling since the beginning of the year.
The rate of the Livret d'épargne populaire (LEP), reserved for low-income households, will go from 3.5% to 2.7%, the subject of a "boost" , because its theoretical formula put it at 2.2%.
• Increase in VAT on gas and electricityStarting Friday, VAT will rise from 5.5% to 20% on electricity and gas bills to align with a 2022 European directive. This sharp increase is supposed to be "offset" by a cut in another government tax, but some consumers will still see their bills increase.
Why this increase? Until now, gas and electricity bills included a fixed portion, the subscription, subject to a 5.5% VAT, and a variable portion, the price of the gas or electricity consumed, subject to a 20% VAT. From August 1, this "reduced" rate will be eliminated: the "subscription" VAT will be aligned with that of consumption, i.e. 20%. The measure that eliminates this 5.5% rate is included in the 2025 Finance Bill.
The highly sensitive subject of energy prices has regularly ignited political debate since the surge in gas and electricity prices in 2022. "To neutralize this increase," the State has provided a compensation mechanism by reducing "excise duties" (government taxes) between August 1 and December 31, indicates the National Energy Mediator.
• Additional costs in the absence of a Linky meterFor households that do not have a Linky meter , fees are to be expected and will be charged on your electricity bill. In detail, every two months, a fixed amount of 6.48 euros (excluding tax) will be payable, which corresponds to the "specific management" of the old meter, according to the Energy Mediator who communicated on July 10 about these changes. This represents 38 euros per year. Note that there may be additional fees of 4.14 euros (excluding tax), only if you have not transmitted your consumption indexes to Enedis for more than a year.
