Driven by rising supply costs and the impact of tensions in the Middle East, the gas bill will increase again on July 1 for the majority of French households.
After a slight lull in June, gas consumers will have to face a new increase in their bill. There CRE (Energy Regulatory Commission) announced a 7.4% increase in the benchmark gas sales price (PRVG) on July 1, a development which will directly concern the majority of French households subscribing to natural gas.
This increase occurs in a context of persistent tensions in energy markets. According to the CRE, the benchmark gas price will increase from €152.86/MWh including tax in June to €164.21/MWh including tax in July. On average, affected households will see their bill increase by around €2.7 including tax.
Middle East conflict continues to weigh on prices
The announced increase is explained above all by the evolution of supply costs on international markets. CRE emphasizes that gas and oil prices remain under pressure due to the continuing conflict in the Middle East, a situation which continues to fuel the volatility of energy markets.
This increase mainly concerns the approximately 6 million households having subscribed to an offer indexed to the benchmark gas sales priceor around 60% of residential subscribers. Since the disappearance of regulated prices, this benchmark price serves as a reference for suppliers to develop their commercial offers and allows consumers to compare the different market offers.
July’s increase marks a clear rebound after the 4.8% drop recorded in June. More broadly, the benchmark price is now 18% higher than that of April, a period which still preceded the surge in prices linked to geopolitical tensions.
Fixed price offers will not be spared
Beyond supply costs, CRE also highlights the increase in costs borne by suppliers. This concerns in particular energy savings certificates, a system intended to finance the energy transition, part of the cost of which is passed on to consumers’ bills.
Another increase factor: gas transportation costs. From July 1, distribution rates will increase by 5.87%. This component of the bill applies to all subscribers, regardless of their contract.
Even households having chosen a fixed price offer, i.e. around 40% of residential consumers, will not be fully protected. The CRE estimates, however, that the impact will remain limited for these customers, with an average increase of around 1.5% on their bill. © Magnific
