The shock is severe for French consumers. On July 1, 2024, the price of gas jumped by almost 12%. This spectacular rise in gas prices raises many questions. Why such an increase? What will be the concrete impact on household bills? Faced with this surge in prices, solutions exist to limit damage. Routing, wholesale markets, energy savings certificates: lesfurets.com offers ways to reduce the bill. Find out how to control your energy budget despite the looming price storm.
Summary :
The reasons for the rise in gas prices explained
Increase in transport rates: the main culprit
The increase in the price of gas in July 2024 is largely explained by the increase in the tariff for Third Party Access to Distribution Networks (ATRD). In fact, this tariff, which covers the use and maintenance of the gas network, increases by 27.5%. However, this increase alone represents 55% of the total increase in the benchmark price of gas in France. The drop in gas consumption over the last three years is singled out as one of the causes of this increase.
> Consult our article on: “Gas prices: an increase of 11.7% in July 2024”
Wholesale markets: additional pressure on prices
The increase in gas prices does not stop there. Wholesale markets also contribute to this increase. Since the price of gas in these markets increased from €25 per MWh at the end of February to €35 per MWh currently. This development is responsible for around 37% of the increase in the benchmark gas price.
The role of energy saving certificates (ESC)
The energy savings certificate (EEC) system also plays a role in the increase. Because this mechanism, which pushes suppliers to financially help their customers in carrying out energy renovation work, is seeing its cost increase. And, this increase inevitably has repercussions on the final price of gas for consumers.
Concrete impact of the increase in gas prices on bills
Increase in price per kWh: the figures to know
The increase in the price of gas results in a significant increase in the price per kWh. For households with gas heating, the average price per kWh increases from €0.09140 including tax in June to €0.10261 including tax in July. Likewise, for those who use gas only for cooking and hot water, the price rises from €0.11261 including tax to €0.13159 including tax.
To better understand the impact on the price of gas, let’s take two concrete examples:
- A household of 2 people using gas for cooking and hot water in a 50 m² home (annual consumption of 2,945 kWh) will see their annual bill increase to 387 euros. An increase of almost 60 euros.
- For a similar household also using gas for heating (annual consumption of 7,445 kWh), the annual bill will reach 763 euros. Or 80 euros more than in June.
What are the solutions to deal with the rise in gas prices?
Opt for a fixed price offer: protection against fluctuations
Faced with rising energy costs, subscribing to a fixed price offer can be an interesting solution. This option makes it possible to maintain the same price per kWh despite tariff increases. Be careful though: if prices drop, you won’t be able to benefit immediately.
Reduce your consumption: simple but effective actions
Reducing consumption remains the surest way to limit the impact of rising gas prices. Here are some ideas:
- Optimize heating: lowering the temperature by 1°C can reduce consumption by 7%
- Maintain your boiler regularly
- Insulate your home correctly
- Use energy-efficient equipment
Compare offers: the reflex to adopt
In this context, comparing offers from different suppliers becomes essential. Thus, online comparators, such as lesfurets.com, allow you to find the contract best suited to your needs and your budget. Do not hesitate to use these tools regularly to ensure you benefit from the best pricing conditions.
The benchmark price of gas: a new indicator to watch
What is the benchmark gas price?
Since July 1, 2023, the benchmark gas price has replaced the regulated gas tariff of ENGIE. Defined each month by the Energy Regulatory Commission (CRE), it represents the cost of gas in France. Note that this price serves as a reference for suppliers to establish their price lists. In this way, it helps consumers identify the most advantageous offers.
How to use the benchmark price to optimize your spending?
The benchmark gas price is a valuable tool for consumers. It allows to :
- Easily compare offers from different suppliers
- Assess the competitiveness of your current contract
- Anticipate future price changes
Monitor this benchmark price regularly to ensure you always benefit from the best pricing conditions despite the increase in gas prices. Stay informed, compare offers and don’t hesitate to change supplier if necessary. Faced with rising gas prices, the best defense is to be an informed and proactive consumer!
