The president of the Energy Regulation Commission, Emmanuelle Wargon, advises subscribing to a fixed price offer at the end of the regulated gas tariff on 1 July next. That is to say that you sign a contract whose price is fixed for 12, 24 or 36 months but that you can terminate at any time if the price drops. A reassuring choice that also protects against price increases on the markets.
With the end of the regulated gas sales tariff (TRV) as of July 1, 2023, 2.3 million customers, mainly at Engie, will have to choose a new contract and try to anticipate tariff changes that are still uncertain.
Asked by France Info, a few weeks ago, the president of the Energy Regulation Commission, Emmanuelle Wargon, advised to subscribe to a fixed price offer. (…) Now that the gas is again at a correct price, the suppliers are offering or will be offering fixed price offers. L, you sign for one year, two years, three years, you no longer have any risk since you know how much you will pay.
The majority of households have a fixed price contract
During the energy crisis of the last 18 months, fixed price offers had disappeared from the market, as they had become too expensive for suppliers’ finances. Nevertheless, today, more than half of the households consuming gas have a fixed price contract, according to the latest data from the CRE. For the individual, if it is a very protective formula, because it is not subject to market fluctuations, will it be relevant next July?
Today, the megawatt hour (MWh) of natural gas delivered in 2024 in France is trading at around 50 euros. This level had reached almost 300 euros / MWh at the end of August 2022 for delivery in 2023, specifies Julien Tedd, co-founder of the broker Opera Energie. Subscribing to a fixed price market offer allows you to freeze your gas budget at a relatively moderate level. And therefore not to suffer a possible new increase during the next winter.
Obviously, prices can always fall: for example, the average level of theoretical regulated sales tariffs on June 1, 2023 is 6.9% lower including tax than the level of tariffs frozen since January 1, 2023 announced to CRE. But prices might as well rev up again.
Why Your Bill Isn’t Going Down Despite Falling Gas Prices
Prices higher than the regulated price
According to the energy mediator comparator, 24 offers for 15 suppliers are referenced, not counting the areas managed by a local distribution company, such as Strasbourg, Colmar, Bordeaux or Grenoble where only the regulated tariff applies.
Only 8 offers identified by the mediator are fixed price, with annual rates between 1805 and 2800 euros for a 120m2 house that consumes 14,000 kWh/year, compared to 1,708.66 euros at the Engie regulated tariff. Among these offers, there is that of EDF called ‘Avantage Gaz’, with a fixed price for 4 years. Other alternative suppliers such as TotalEnergies, Dyneff, Ekwateur, Wekiwi or the subsidiary EDF Sowee also offer peix fixed contracts.
On the comparator of the UFC-Que Choisir association, there are 16 main gas offers, seven of which are fixed price. Again, none is more advantageous than that at the regulated rate which ends on July 1st. These fixed price offers are up to 726 euros more expensive.
In general, if a direct seller offers you low monthly payments, don’t trust them, they are sometimes underestimated. What you have to look at is the price of the subscription and the kWh, recalls Caroline Keller, communication director of the energy mediator. Fixed price offers are generally more expensive than index price offers on the markets, but it will be a winning choice if the price of gas on the markets goes up. Similarly, offers containing biogas (green gas) are usually a little more expensive, but it is an ecological choice.
Especially since a fixed offer, even over several years, remains non-binding and can therefore be canceled at any time, free of charge.
A reference price expected at the turn
Household consumption can also define the most suitable offer, fixed or variable. Consumers must be accompanied by experts to analyze their current consumption and think about the most interesting offer for them, points out Adeline Jubert, energy manager at the broker Meilleurtaux. Currently, there are very cheap offers, but not necessarily secure over time, and other higher ones, somewhat on the Engie model, but with fixed prices over 1 or 2 years, which secures the invoice on the hard way.
With a view to the end of the regulated gas tariff in six weeks, CRE has set up a reference price. This will change every month to allow households to compare offers from gas suppliers, such as the 1-year Tranquility or Gateway contracts offered by Engie to its customers at the regulated gas price.
The reference tariff does not protect the consumer as such, because no supplier is obliged to offer an offer at this price, unlike the regulated gas tariff. However, it constitutes a benchmark for the consumer, specifies Lucile Buisson, project manager at UFC-Que Choisir. Big downside: this reference price, which will be set on June 1, will not concern fixed price offers despite repeated calls from UFC-Que Choisir or CLCV.