In July, the average gas bill for millions of French citizens will rise by 11.7% compared to June, due to a rebound in prices and a hike in distribution network tariffs.
The rise is paradoxical; while gas prices waver at levels ten times lower than the peak of the 2022 energy crisis, numerous French households are about to face a substantial rise in their bills.
The benchmark price average is set to reach €129.2 per megawatt-hour (MWh), up from €142.7 per MWh in June. Despite the rise, it still rates 3.5% lower than the average price on 1 January 2024, the regulator noted.
The Energy Watchdog reports that the average annual bill of a residential customer on this "benchmark price" would come in at €1,184 in July, compared to €1,060 in June, and €1,227 in January.
Why the increase?
A decision made by the French Energy Regulatory Commission (CRE) in February to revalue the gas transmission tariff for the next four years – essentially, the toll charged by the network manager GRDF to the suppliers.
The network component of the bill, which comprises about a third of the total cost, is "increasing slightly as we spread rising costs over a decreasing consumption," explained Emmanuelle Wargon, President of CRE, at an AFP briefing.
Between 2021-2023, the country's gas consumption fell by 20%. However, the networks' maintenance costs are growing despite a steady need for them and their essential role in gradually integrating biogas.
