The rise in gas prices in France, scheduled for July 1, comes at a time when debates over purchasing power dominate the political scene. This 11.7% increase in the gas price will bring the average annual household bill from 1,060 euros to 1,184 euros, according to data provided by the gas network manager GRDF (Gaz Réseau Distribution France). This tariff revision, which comes despite a drop in gas prices on international markets since the start of the year, raises questions and concerns among consumers and political actors.
Reasons for a price increase
The main reason for this increase is the revaluation of the gas transport tariff, a cost that suppliers pass on directly to consumers. This rate, often called a “network rate,” covers around a third of the total gas bill. It is essential to finance maintenance and modernization expenses for gas infrastructure, while allowing progressive integration of biogas into the network. This increase is considered necessary to ensure the reliability and sustainability of the gas distribution network in France. The Energy Regulatory Commission (CRE), the sector’s regulatory authority, announced in February the increase in the network tariff and its impact on July bills. However, the confirmation of this increase on June 10 coincided with a busy electoral period, sparking strong reactions among candidates and political parties.
Political reactions and electoral promises
The new increase in gas prices was quickly used as political leverage. The vice-president of the National Rally (RN), Sébastien Chenu, promised that, if his party acceded to Matignon, one of its first measures would be to stop this rise in prices. This promise was echoed in the ranks of the New Popular Front, the left-wing coalition, which also proposes similar measures to protect the purchasing power of the French. However, any intervention on gas prices must comply with article L410-2 of the Commercial Code, which allows prices to be frozen for six months only in exceptional circumstances. This restriction makes the implementation of political promises more complex than it seems.
Economic outlook and government actions
Economy Minister Bruno Le Maire sought to allay fears by announcing a planned 10 to 15% drop in electricity prices in February. This reduction is said to be due to the drop in wholesale electricity prices and an exceptionally high year in 2022 that will no longer be taken into account in tariff calculations. According to Nicolas Goldberg, an energy expert at Colombus Consulting, this drop will automatically translate into a lower electricity bill for consumers. The CRE continues to play a crucial role by publishing its “reference price” for gas each month, a reference that allows consumers to compare offers available on the market. Since the disappearance of regulated tariffs in June 2023, gas offers have been mostly indexed to this index, and the July increase will probably be passed on in the same proportions. However, suppliers retain a certain freedom in passing on this increase, thus creating an opportunity for consumers to play on competition. This increase in gas prices in France, although announced and explained, comes in a sensitive political context where purchasing power remains a major issue. The coming weeks will be decisive in assessing the impact of these price adjustments on French households and on current political dynamics.
