Very bad news for millions of French people and their wallets. From July 1, the benchmark price of gas will increase by 11.7%, the energy regulatory commission (CRE) announced this Monday, June 10. The reason for this significant increase, even though gas costs are falling? An increase in the price of distribution networks.
Gas prices: an increase of 11.7% compared to June
Precisely, the benchmark price of gas will reach 129.20 euros per megawatt hour (MWh) including tax on average for consumers, which represents 13.50 euros more than in June per MWh explained the CRE, which still wishes to put this increase into perspective. Even if this price is up 11.7% compared to June, it remains 3.5% lower than the average price of January 1, 2024, specifies the commission. The annual invoice including tax for a residential customer in an offer indexed to this “benchmark price” will be 1,184 euros at the July price, compared to 1,060 euros per year in June, and 1,227 euros in January.
A revaluation of the gas “toll”
The reason for this sudden increase is mainly found in the CRE’s decision in February to revalue the gas transport tariff for four years which reaches homes and businesses, in other words, the toll that the GRDF network manager charges suppliers. This network share which accounts for a small third of the bill “increases a little since increasing costs are spread over decreasing consumption”, Emmanuelle Wargon, president of the CRE, explained to AFP. In the period 2021-2023,The country’s gas consumption has in fact fallen by 20%. However, the networks are still there, and must support increasing maintenance costs while allowing the gradual integration of biogas.
