The subject has inflamed the legislative campaign, from Monday July 1st, the average gas bill increases by 11.7% for millions of French people, mainly because of the revaluation of the costs of maintaining the gas network.
The increase has been announced for months, but its implementation has hit the political calendar, just a few days before the end of a decisive legislative election, largely marked by the question of purchasing power. After a respite of several months, the average annual gas bill will climb by 124 euros, from 1,060 euros in June to 1,184 euros on July 1.
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 tariff shield, the subsidy mechanism launched at the end of 2021 to protect households from excessively large increases during the energy crisis, fueled by the post-Covid recovery and the war in Ukraine. 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 an increase now?
Due to a rebound effect of prices on the gas markets where operators obtain their supplies and, above all, due to the significant revaluation for 4 years of the gas transport costs borne by the distribution network manager GRDF. This “toll”, billed to suppliers and accounting for a third of the bill, must be increased in the face of the increase in maintenance and modernization expenses for gas infrastructures, while allowing the integration of green gas into the pipes. And this, especially since it is becoming more difficult to distribute these costs while the number of gas subscribers is falling: -197,000 between the end of 2022 and the end of 2023, according to the CRE.
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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. Enough to stir up the debates… 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.
“The increase in the price of gas is proof positive that it is essential to accelerate our energy transition,” commented the Minister of Economy and Finance Bruno Le Maire, guest on France Inter, on Monday.
This increase is “proof that the climate scepticism of the National Rally, its refusal to move towards green energy, its inability to defend the electric vehicle (…) puts us hand and foot in a bind with the countries producing gas and oil”, added Bruno Le Maire.
Gas prices, savings plan, more transparency in supermarkets… What’s changing on July 1st
With AFP.
