While the price of gas has fallen significantly since the beginning of the year on the markets, bills are going to increase.
An increase of 11.7% applies from this Monday, July 1 for millions of French people.
On average, a household will spend 124 euros more per year.
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Your purchasing power
Bad news for the French budget. The average price of gas will rise by 11.7% on Monday for millions of people, increasing their annual bill by around 124 euros. This price increase, announced for months, has come at the expense of a legislative campaign largely devoted to purchasing power.
The average annual household bill will increase from 1,060 euros in June to 1,184 euros on July 1, while gas prices have fallen significantly since the start of the year in markets where they peaked in 2022.
How can this significant increase be explained?
This increase is mainly due to the revaluation for four years of the rate for transporting gas which arrives in homes and businesses. A sort of toll that the gas network manager GRDF charges suppliers, who then pass it on to consumers.
This “network tariff”, which accounts for around a third of the bill, must be increased to cover maintenance and modernization expenses for gas infrastructures, while allowing the gradual integration of biogas.
Bad news… predictable
Is this a surprise? No. The energy regulation commission (CRE), watchdog of the sector, had already revealed the principle in February. She then clarified the impact on the July bill, on June 10, the day after the European elections marked by the push of the RN and the decision of the President of the Republic to dissolve the National Assembly. A combination of circumstances, because the CRE always publishes its gas reference price around the 10th of the month. But this calendar electrifies a campaign largely devoted to purchasing power.
The energy policeman wants to put things into perspective: at around 13 cents per kWh in July, the average reference price of gas certainly increases by 11.7% compared to June, but after months of decline and it remains behind 3.5% compared to January.
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The CRE publishes its “benchmark price” for gas, a sort of compass to help consumers compare offers, like every month since the disappearance of regulated prices in June 2023. Most gas offers are indexed to this index, the July increase should therefore be applied in the same proportions to the bill. But fixed price offers can also provide for revisions in the event of possible increases other than those in the price of gas itself.
Thus, “the vast majority of consumers will see this increase reflected in their bills”, i.e. most of the 10 million residential customers connected to GRDF, explained the Energy Mediator to AFP.
Suppliers, however, remain “free” to pass on the increase or not, according to the CRE. Enough to restart the price battle… Consumers can compete with the Energy Mediator’s online comparator, without waiting for promises to be fulfilled.
