As of June 30, several million households will have to change their contract with the disappearance of the regulated gas tariff. Here’s what you need to do (or not do) by the deadline
The regulated sales tariff (TRV) of gas, marketed mainly by Engie, will be abolished on June 30 for individual customers and condominiums consuming less than 150,000 kWh. This TRV, the amount of which is proposed each month by the Energy Regulation Commission and validated by the Minister for the Economy, directly concerned 2.5million customers in April and more than 7million in total if we add the households having signed contracts in market offers, indexed on this TRV, with other suppliers. Here are 7 questions that arise with the end of the regulated gas tariff program.
Which suppliers sell gas at the regulated price?
Engie is the historical supplier of gas TRVs – more than 9 out of 10 contracts – since the days of GDF, Gaz de France. But local distributors such as Gaz de Bordeaux, Gaz de Grenoble or the Alsatian group Electricit de Strasbourg (S) are also on the market.
Why does the regulated rate disappear?
The disappearance of the TRV was validated by the energy-climate law of November 8, 2019, which confirmed a decision of the Council of State of 2017. The latter had then considered that the regulated gas tariffs were contrary to European law insofar as where they are a hindrance to the realization of a competitive market.
How do I know if I am affected?
For three years, Engie has sent its millions of customers affected by the end of regulated gas tariffs (TRV) letters to warn them of the situation and encourage them to change their offer. The last letter was distributed last March. Sometimes, Engie even boasted two different contracts a few weeks apart.
If in doubt, Engie offers several methods of contact: postal mail, email or telephone.
What happens if I do nothing by June 30?
Customer of the Engie regulated tariff, if you do nothing by June 30, you will automatically be switched from July 1 to a market offer proposed by the incumbent supplier. But be careful, this one will not necessarily correspond to your needs and will not always be the most advantageous for you.
At any rate, the consumer retains his freedom and can change without delay and free of charge of offer, as of supplier.
If you hold a fixed price contract with Engie, and even if it is close to the TRV level, your contract will run its course until its expected chance. Engie cannot denounce him before his chance.
What do you need to know about Engie’s new Passerelle offer?
Customers at the Engie regulated tariff, and who have not chosen a new offer by June 30, will be switched directly to Passerelle. According to information provided by Engie at the end of April, the price of this contract cancellable at any time will be indexed to a benchmark calculated by the Energy Regulation Commission (CRE). An indicative and non-binding amount.
Pending the publication of the July reference tariff, which will not be known until June, the indicative price of the Gateway offer was in April at a level fairly close to the regulated tariff, although slightly above, explains Engie MoneyVox.
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To date, the price of Passerelle translates into an increase of 3% – almost 50euros more per year for a Parisian household of 4 people – compared to that of the TRV. But we do not yet know what the market prices are for July. They will be known in mid-June and applicable on July 1, specifies Engie. Engie’s director of private markets, Florence Fouquet, even expects the Passerelle tariff to drop below that of the TRV by then.
How to choose a gas offer?
For 10 years, the comparator of the energy mediator acts as a reference on the market. It lists all the offers in the sector and classifies them according to several criteria such as price, your consumption or your place of residence.
The first piece of advice given to consumers before changing offers is to always check the price of their current contract and compare the offers offered by suppliers. (…) I recall that the change of supplier is free, and that no costs can be invoiced for a consumer during a change of supplier, specifies the mediator Olivier Challan Belval MoneyVox. He also insists on the need to monitor all communications sent – email, SMS – by his supplier who could announce price increases.
Why Your Bill Isn’t Going Down Despite Falling Gas Prices
When confirming the end of the gas tariff shield, and recording the end of the regulated tariff, the Minister of the Economy, Bruno Le Maire, explained that gas prices had returned to their pre-crisis level of 50 euros of the mgawatt hour.
But for the moment, this fall in the price of natural gas on the European wholesale market is not really benefiting the consumer. This is actually good news for gas suppliers who do not intend to resell their stocks built up when prices were high.
The government, like Engie, confirm that the bill will only drop in a second step. But contrary to the era of regulated gas tariffs, the State will not be able to impose price reductions on suppliers.
Will the regulated electricity tariff disappear?
Gas and electricity are two special cases. For what? France imports its gas when it produces its electricity, in particular thanks to nuclear power plants. Electricity is thus a non-substitutable good and one of primary necessity, according to the Council of State quoted by The world.
Consequently, the question of the end of the regulated electricity tariff for individuals is not on the table, unlike professionals and businesses which have not benefited from it since December 31, 2020.
In addition, the Ministry of the Economy announced on April 21, the continuation of the tariff shield on the regulated price of electricity until the end of 2025.