The average gas bill for millions of French consumers will increase by 11.7% in July compared to June.
This increase is due to a slight rebound in gas prices and, more significantly, a rise in distribution tariffs, as announced by the energy regulator.
The bill will reflect a substantial increase in the cost of gas transportation managed by GRDF, the distribution network operator, and billed to suppliers. This measure, announced in February by the Energy Regulatory Commission (CRE), aims to maintain the network that delivers gas to homes and businesses.
However, distributing these network costs becomes more challenging as gas consumption and the number of subscribers decline. This portion, accounting for a small third of the bill, “increases slightly as we spread rising costs over decreasing consumption,” summarized Emmanuelle Wargon, President of the CRE.
Slight Rebound in Gas Prices
Considering the recent increase in gas prices, which had significantly decreased since early January, bills are expected to rise by 11.7% on average in July. The average reference price will be 129.2 euros per MWh, compared to 115.7 euros/MWh in June. However, the regulator notes that even with this increase, the price remains 4.7 euros/MWh lower than the average price on January 1, 2024, representing a 3.5% decrease.
The CRE estimates the average annual bill for residential customers with variable-price gas contracts to be 1,184 euros, compared to 1,060 euros in June and 1,227 euros in January.
Reference Price as a Guide for Consumers
The Energy Regulatory Commission publishes its “reference price for natural gas sales” to assist residential consumers in comparing offers, as it has done monthly since the elimination of regulated tariffs in June 2023. This reference price is “indicative” as suppliers remain “free to set the price conditions of their offers” and may or may not pass on the increase to the bill, specifies the CRE.
According to the Energy Ombudsman, the increase will likely affect the vast majority of the approximately 10 million residential subscribers connected to the GRDF gas distribution network.
Additional Tax Increase
This increase comes in addition to the doubling since January 1st of a tax paid by gas suppliers, a measure implementing the end of the tariff shield announced by the government. However, the decline in gas prices on the markets observed since January has mitigated the impact on the bill.