Tips and help on navigating the new changes to france’s gas market

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Tips and help on navigating the new changes to france’s gas market"


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WHAT IS THE SITUATION WITH GAS PRICES IN FRANCE? Until June 30, regulated gas tariffs were available in France (_tarifs réglementés de vente_, TRV). This meant that the gas prices were fixed


by public authorities, according to certain formulas. Engie provided the gas to around 95% of these regulated contracts, with local companies (especially in Bordeaux and Strasbourg) making


up the rest. The TRV dated back to 1946 in France and was first brought in by Gaz de France (GDF), which is now Engie. Other options have been available via other companies since 2007, to


end the monopoly of Engie and electricity provider EDF. Regulated tariffs are not always the cheapest option, but they do offer a reliable and consistent service. As of late June, 2.5


million clients were still on this tariff (out of around 11 million gas clients in France in total). The regulated electricity price and regulated electricity contracts were not affected by


the ending of the regulated tariff for gas. WHAT IS CHANGING AND WHY? The TRV ended on Friday, June 30. In 2017, France’s top administrative authority _Conseil d’Etat_ ruled that regulated


tariffs were against European law. This was followed in 2019 by a new climate law, which ruled that these contracts must no longer be sold, and should be ended completely by June 30, 2023.


IS THIS THE SAME AS THE GOVERNMENT ENERGY PRICE SHIELD? France has recently had a _bouclier tarifaire _policy in place to limit energy price rises, but this is nothing to do with the


regulated tariffs. It translates as ‘tariff shield’. It was brought in as a way to keep energy prices down amid a backdrop of inflation and the war in Ukraine. The prices were frozen last


year at the level of November 2021, and this year the government pledged they would not rise more than 15%. France’s economy minister, Bruno Le Maire, SAID the gas price shield would


continue until the end of this year, but that its existence was theoretical because the cost of wholesale gas had fallen so much in recent months. SHOULD I CHANGE MY CONTRACT? There is no


need to do anything unless you want to. People who were on a regulated gas contract were automatically moved on June 30 to _l’offre passerelle d’Engie _(‘bridging offer’). This is not really


a separate contract or offer, because it only concerns people who are on the regulated tariff. Other customers cannot choose it. The _offre passarelle_ calculates the price of gas per


kilowatt hour, on a monthly basis. It uses a formula that will be validated by the _Commission de Régulation d’Energie_ (CRE). It is similar to the previous regulated tariff. Before the


changeover, consumer association UFC-Que Choisir recommended that people who were on a regulated gas tariff should wait until July 1 before making any changes. You are now advised, if you


wish. to check the new tariffs and conditions, and see if they still suit you. The CRE has committed to publishing prices for gas every month, to help consumers keep an eye on the markets.


IF I AM NOT HAPPY WITH MY GAS CONTRACT, HOW DO I SEARCH FOR A DIFFERENT SUPPLIER? Once you know the tariffs and conditions of the new Engie offer, you can compare it to other offers on the


market, and switch if you prefer. Anyone on a contract can change gas providers at any time, without paying a fee. This means that it always makes sense to compare current offers available,


to see if you could save money compared to your current deal. When you sign up for a new deal, your old contract is ended automatically without you having to do anything. There are several


comparison tools available. The ‘official’ energy comparison tool, from the _Médiateur national de l’énergie_, IS ONLINE HERE. UFC-Que Choisir also has a comparison tool (its _COMPARATEUR_)


that lets you check current gas and electricity offers and calculate which could provide you with the best value. Other comparison tools also exist, like THIS ONE. UFC-Que Choisir recommends


that people proceed with caution and take a look at what is available, because “the change will shake up the market” and could lead to more competitive offers on the market. Since October


2022, the price of gas has been dropping on the markets, which is likely to mean providers will provide better-value contracts over the weeks and months following the end of regulated


tariffs. READ MORE: IS THERE A FEE FOR CHANGING ENERGY CONTRACTS IN FRANCE? HOWEVER, LE _MÉDIATEUR NATIONAL DE L’ÉNERGIE_ ADVISES: * Take your time and do not sign a contract immediately


when you are approached * Never rely on commercial offers based on the number of monthly payments, which can change. The tariff must be offered and based on the price per kilowatt-hour. It


also recommends that consumers sign up for fixed-price tariffs, which are less affected by changing markets. François Carlier the president of the CLCV consumer group, said he recommends


avoiding ‘too-good-to-be-true’ offers from smaller companies. He told FRANCEINFO: “[During the energy crisis] many contracts were broken, and saw rises of 40 to 80%, with just one email sent


a month in advance.” The actual gas supply network is run by the state, no matter who your provider is. RELATED ARTICLES END OF REGULATED GAS PRICES IN FRANCE – HOW TO FIND THE BEST DEAL


FRENCH GAS SUPPLIERS BEGIN TO CANCEL CONTRACTS AMID PRICE SURGE GAS CUSTOMERS IN FRANCE ON OLD REGULATED TARIFF TO GET ‘BRIDGE’ OFFER


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