Regulated gas tariffs, applied by Engie, will once again increase sharply, on average by 12.6% all taxes included, at 1er October, in the wake of rising market prices, the Energy Regulatory Commission (CRE) announced on Monday, September 27.
“This development is the result of the historic rise in gas prices on the world market which is reflected in the supply costs of the gas supplier Engie”, explains the regulator.
Excluding tax, the increase is 13.9% and, in detail, 4.5% for users of gas for cooking, 9.1% for those who have dual use (cooking and hot water), and 14.3% for homes that heat with gas, details the Commission.
Gas prices are at very high levels in Europe due to various factors: low storage, strong demand for liquefied natural gas (LNG) in Asia and the inability of Norway and Russia to increase their deliveries, underlines CRE. Demand is also driven by the global economic recovery, thanks to the improvement of the situation on the front lines of the Covid-19 pandemic.
Continuous rise
Regulated tariffs, updated monthly, have seen a series of sharp increases recently. Since 1er August 2020, the monthly changes in regulated tariffs excluding tax all resulted in increases, with one exception, the 1er April 2021 (- 4.1%). They further increased by 8.7% in the 1er September, after more than 5% in August and almost 10% in July.
Regulated tariffs, which must disappear on 1er July 2023, are applied to around three million households, mainly by Engie, which has a monopoly over most of the country. Local distribution companies (ELD) can also market it in certain cities (Bordeaux, Grenoble, Strasbourg, etc.). Their prices were also revised upwards on Monday.
Energy check
This increase comes in an already tense context concerning the purchasing power of the French.
Electricity prices are soaring on the wholesale market, driven by gas prices and quotas CO emission2. This is likely to result in a sharp increase for consumers at the beginning of 2022, when CRE will have to propose a new evolution of regulated tariffs, worry the defense associations. of CLCV consumers and UFC-What to choose. The latter presented a study on September 20 anticipating a jump in “Nearly 10%” for the regulated tariff for the sale of electricity – all taxes included. This would amount to an average increase of 150 euros for households also using electricity as a means of heating.
A surplus that would exceed, on its own, the energy check of 100 euros announced by the government in mid-September. This check is a device already in place in the past, intended to cover part of the electricity, gas or fuel bills or even energy renovation work. It is automatically sent to 5.8 million fuel-poor households.
Seven months before the presidential election, the rise in energy prices is a sensitive issue for the executive. It is one of the main expenditure constraints of households, especially the smallest, and it was the trigger for the movement of “yellow vests” at the end of 2018.