The General Confederation of Labor (CGT) of the gas distributor GRDF expressed its opposition on Thursday to the decision of the board of directors to extend the lifespan of gas pipes from 45 to 100 years. According to the union, this measure represents an increased “danger” for customers of GRDF, a subsidiary of the Engie group.
This decision concerns gas pipes installed in collective buildings from 1979. The CGT affirms that this extension endangers the security of gas distribution in France as well as that of citizens and users. The union recalls that similar decisions had already been taken in the past, without always guaranteeing a real improvement in safety standards.
Risks for the Safety of Installations
The CGT emphasizes that extending the lifespan of gas pipes without strengthening maintenance and control measures can lead to leaks and accidents. “These extensions will inevitably undermine the security of gas distribution,” declares Sébastien Raya, central CGT union delegate at GRDF. He adds that the security of installations must remain a top priority to avoid potentially serious incidents.
The union also highlights an “economic sleight of hand”, claiming that GRDF is using this decision to reallocate the funds initially planned for the safety of the installations. According to the CGT, these funds are transformed into dividends for Engie, the parent company, to the detriment of the investments necessary to guarantee the security and reliability of the distribution networks.
Impact on Prices and Financing
The decision to extend the lifespan of the pipes comes alongside an average increase of 27.5% in the tariff for the use of distribution networks (ATRD) on July 1, according to the Energy Regulatory Commission (CRE ). The CGT denounces that users paid for the renewal of the installations, but that the funds are now used for other non-transparent purposes.
GRDF, contacted by AFP, reacted by affirming that this decision is a matter of “accounting and fiscal transparency” without impact on its industrial policy. GRDF management ensures that the extension of the lifespan of the pipes does not affect its ability to continue its program to bring non-compliant works up to standard or its business project.
Ownership and Management of Gas Networks
The gas distribution networks are the property of local authorities, which entrust their management to GRDF via concession contracts. According to the CGT, GRDF does not respect the commitments made in these contracts with regard to the provision of high quality services and the safety of the installations. “Through concession contracts, GRDF undertakes to provide services worthy of a major public service, but does everything differently,” says the union.
This situation raises questions about the governance and responsibility of gas network managers in France. The CGT calls for a re-evaluation of the decisions taken by GRDF and for better transparency in the use of funds allocated to the security of installations.
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