The regulated gas price is replaced by the CRE benchmark price
You should know that since 1946, regulated gas sales tariffs (TRV) served as a reference rate. These TRVs were gas supply contracts marketed by historic suppliers such as Engie and local distribution companies (ELD).
The price of these contracts was set once a year by the State.
Since 1999, these prices have coexisted with other offers which, for their part, were set freely by other suppliers. It goes without saying that to remain competitive, they based themselves on the TRV to set their price, but also on the market and on the costs incurred to supply the gas, which means that their prices could be higher or lower than those of TRVs.
But now, as of June 30, 2023, to comply with European law, an end is put to this TRV system, which means that consumers who benefited from these contracts must choose a new offer. To help consumers navigate the different offers from different suppliers and be able to compare them more easily, the Energy Regulatory Commission (CRE) has established a benchmark pricethat is to say a monthly benchmark price on the market.
Suppliers are not obliged to respect this benchmark price, but, each month, they can refer to it to update their price schedules.
An increase in the CRE benchmark price in October 2023
As of October 1, 2023, an increase in gas prices is therefore inevitable, but what is it exactly? Until then, the CRE benchmark price was lower than the old regulated gas price, but since the end of the TRV, it has increased under the effect of the rise in wholesale gas pricesafter the drop observed from spring to summer 2023.
This increase in wholesale gas prices is mainly due to strike action on Australian gas sites which led to shortages on Asian markets and, in turn, on gas producers supplying Europe. The increase in prices is thus estimated at +8% based on the CRE benchmark price.
Changes in detail
A more in-depth observation reveals the following points:
- For a heating contract, the average price per kWh increased from €0.08 to €0.09;
- For a cooking/hot water contract, the average price per kWh increased from €0.10 to €0.11;
- Monthly subscriptions remain at the same price.
Limit the effects of these increases on your gas bills
To avoid being too impacted by increases in these gas prices, it remains possible to subscribe to a fixed price offer. This type of contract allows you to benefit from a stable price throughout the duration of your subscription. The latter can be contracted for one or more years. The disadvantage of this type of contract is that you are certainly protected against the increase in the price of gas, if it falls, you will not benefit from this reduction.
Nevertheless, in a context of permanent price increases, this solution may prove interesting. Other suppliers, such as Engie, offer Gaz Passerelle offers which allow you to terminate your contract whenever you want to subscribe to another, more attractive offer.