Average gas price increases by almost 12% this Monday

This Monday, the gas bill is set to increase by 11.7% for millions of French households, mainly due to the increase in maintenance costs of the gas network. After a respite of several months, the average annual gas bill will increase by 124 euros, going from 1,060 euros in June to 1,184 euros.

According to the Energy Regulatory Commission (CRE), watchdog of the sector, the “average benchmark price” of the kWh, which had a tendency to fall in recent months, will be established for July at around 13 cents, an increase of 11. 7% compared to the June index (around 11 cents/kWh).

An increase to be put into perspective according to the CRE: this July price remains lower (-3.5%) than that of January, which had confirmed the end of the price shield, the subsidy mechanism launched at the end of 2021 to protect households from excessive increases during the energy crisis, fueled by the post-Covid recovery and the war in Ukraine.

Make the competition work

Furthermore, this “reference price” is “indicative” and suppliers remain “free” to pass it on or not, underlines the CRE. It is possible to bring competition into play by referring, for example, to the online comparator of the Energy Mediator.

According to the latter, however, “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.

Why is this increase happening now? Because of a rebound effect in prices on the gas markets where operators obtain their supplies and, above all, because of the strong increase over 4 years in gas transport costs borne by the distribution network manager GRDF.

Network modernization

This “toll”, invoiced to suppliers and accounting for a third of the bill, must be increased in the face of increased maintenance and modernization expenses for gas infrastructures, while allowing the integration of green gas into the pipes. And this, especially since it becomes more difficult to distribute these costs while the number of gas subscribers falls: -197,000 between the end of 2022 and the end of 2023, according to the CRE.

An independent authority, the CRE announced the increase in the gas bill in February, before specifying the terms on June 10, the day after the European elections and the dissolution of the National Assembly. The increase therefore hits the political calendar, one week before the outcome of a decisive legislative election largely marked by the question of purchasing power.

The RN has warned that its first reform if it gains access to Matignon would be to cancel this increase, a measure also advocated by the New Popular Front.

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