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EDF ends power cuts to cash-strapped households over unpaid bills

French households struggling to pay their electricity bills will face a reduction in supply, rather than a total cut, when the 'winter truce' ends on Friday

Glowing filament of an electric light bulb to illustrate a story about French electicity supplier EDF
Photo: Anthony Indraus / Unsplash

Customers who have fallen behind with their electricity bills during the winter months could find that their supply is reduced from Friday, when France’s annual trêve hivernale, ends. But it will not be completely cut.

Late last year, energy supplier EDF committed to supply the equivalent of 1,000 watts to customers who have fallen behind on their bills – enough to permit ‘essential use’ for lighting, water heaters or washing machines, internet usage, phone charging, and refrigeration, but not enough to heat a home.

The operator said it had made the decision because of soaring energy prices.

READ ALSO EU countries reject French bid to regulate gas and electricity prices

“We are committed to supporting our customers in situations of unpaid bills by putting an end to the cutting of electricity supply,” announced Marc Benayoun, one of the group’s executive directors, said in an interview with Le Parisien.

Between November 1st and April 1st, energy suppliers in France are unable, by law, to cut supplies to any household. But once the truce period ends, EDF has confirmed that it will stick to the policy of not cutting customers off. 

Unlike water companies, which have been banned from cutting or reducing water supplies to a property no matter the financial situation of its customers since February 2014, they can still cut services to customers who have not paid their bill outside the trêve period. 

EDF’s supply reduction “will apply in all cases, unless there is a physical or technical impossibility to limit the strength of the power supply,” the company said in a statement in November 2021. 

It added that it already favoured limiting power to customers who had fallen behind on their payments to seeking to cut it entirely. This policy has reduced the number of cuts by a third in five years, it said.

READ ALSO France to relaunch construction of nuclear reactors, Macron announces

“We realised that we were getting almost as good results, in terms of regularising situations and repaying debts, using other means. And in particular the limitation of power,” Benayoun explained.

But each year, “between 200,000 and 300,000 households are deprived of electricity because they could not afford to pay,” national energy mediator, Olivier Challan-Belval, who had been calling on EDF to adopt reduction policies as standard, told France Info. “Today, electricity has really become a good that we can not do without.

“It is not acceptable, in a country like France, that households can find themselves in such a situation of precariousness and poverty,” he added.

Manuel Domergue, of the charitable Abbé Pierre Foundation, welcomed the news. “Millions of households in difficulty will no longer live with this sword of Damocles over their heads!” he said on Twitter.

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TAXES

Explained: France’s exit tax

Planning on leaving France? You may, depending on your circumstances, be charged the 'exit tax'.

Explained: France's exit tax

Like some other European countries, France does have an exit tax for those (French or foreign) who are leaving the country. It’s known by the English name l’Exit tax.

However, it won’t affect most people.

Only those who have been tax resident for a minimum six years of the 10 years immediately before they permanently move out of the country are liable to pay an exit tax – if, that is, they own property, titles or rights worth a minimum of €800,000, or that represent 50 percent of a company’s social profits.

If that affects you, the best advice is to seek expert individual financial advice before moving out of France for good. The relevant page on the French government’s impot.gouv.fr website says it is possible to defer payments, and some relief is available.

Because of the relatively high figures involved, this tax is irrelevant for most people. That said, however, you will still have to inform tax authorities that you are moving out of the country because you may still have income, property and capital gains taxes to pay.

Income tax

You must inform the tax office that you are moving and give them your new address so that your tax declarations can be transferred to your new address.

You are liable for tax on everything you earned in France prior to your departure as well as on any French earnings that are taxable in France under international tax treaties that you earned after your departure.

The year of your departure, you declare your previous year’s earnings as normal – declarations in spring 2024 are for earnings in 2023.

A year later, you will have to declare any earnings taxable in France from January 1st up to the date of your departure, and any French-sourced income taxable source until December 31st of the year of your departure.

If you continue to have any French-sourced income – such as from renting out a French property – you will have to declare that income annually, using the non-residents declaration form.

Property taxes

You will have property taxes to pay if you own a French property on January 1st of any given year – whether it is occupied or not. 

Property tax bills come out in the autumn, but they refer to the situation on January 1st of that year, so even if you sell your property you will usually have the pay a final property tax bill the following year.

Moreover, if you receive income from property in France or have rights related to that property (such as shared ownership or stock in property companies), as well as any additional revenue connected to the property, during the year you leave France, you will be required to pay taxes on these earnings.

If any property assets in France exceed €1.3 million on January 1st of a given year, you may also have to pay the wealth tax (IFI).

READ ALSO What is France’s wealth tax and who pays it?

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Capital gains tax 

If you sell your French property or share of a French property, you may be liable for capital gains tax at a rate of 19 percent. It will also be subject to social security contributions at the overall rate of 17.2 percent.

Capital gains tax varies depending on how long you have owned the property and whether it was a second home or your main residence.

READ ALSO How much capital gains tax will I have to pay if I sell my French property?

The good news is, if you move to another EU country, or any country that has a specific tax agreement with France, you may be exempt from capital gains tax for non-resident sellers on the sale of a property that was your principal residence in France.

If you move elsewhere, you may be able to claim exemption on capital gains tax up to €150,000. As always, you should seek expert financial advice.

Tell Social Security

Inform social security that you are leaving France permanently – and return your carte vitale if you have one. If you do not, you may be liable for any benefits you receive to which you are no longer entitled.

More mundane tasks involve informing utility and water companies, your internet provider, if you have one, the phone company, your insurance companies, banks – and La Poste, who will be able to forward your mail for up to 12 months, for a fee…

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