GAS PRICE. The leaders of the twenty-seven could ask the European Commission to cap gas prices to fight against soaring prices. As a reminder, in France, the price of gas will rise by 15% in January 2023.
[Updated October 4, 2022 at 10:49 a.m.] What if a gas price cap was possible on a European scale? The idea is gaining momentum, but also divides, Germany in particular remains firmly opposed to this option because of the risks involved. Suppliers like Norway could decide to shun Europe for gas deliveries because of this price cap, which could put millions of households at risk. European leaders should already ask the Commission to make a proposal to cap prices, this Friday, at a summit. This Tuesday, October 3, the megawatt hour is offered at 151.91 euros.
As a reminder, Prime Minister Elisabeth Borne confirmed a fairly unprecedented 15% increase in the price of gas, from January 2023. In other words, each month, a household will see its bill increase by 25 euros. “In the most likely scenarios, if everyone takes their responsibilities, there will be no cuts. We would then not need to activate the rationing device” also declared the minister. Also, the government will put in place exceptional energy checks before the end of 2022 to help the most disadvantaged in the face of these exceptional increases in the cost of energy. As a reminder, since 2019, it is no longer possible to subscribe to the regulated gas sales tariff (TRV). Today, nearly 6 million households are subscribed to market offers subject to wholesale prices, which are much less protected from the latest price fluctuations.
The price of natural gas in Europe is soaring. The TTF rating, the Dutch benchmark in Europe, even reached a historic high, 345 euros per megawatt hour, on Tuesday March 8, 2022. It has since fallen but remains well above the usual standards. This is the first visible consequence of the war in Ukraine. So, is there a real risk of higher prices in France? For the time being, not really thanks to the introduction of the tariff shield by the executive. Purchases of energy products could be spared, there should not be a shortage either in France. Monday, September 12, the megawatt hour fell back below the 200 euro mark with a displayed price of 191.50 euro.
However, the Minister of the Economy Bruno Le Maire officially announced that the price of gas would increase, admittedly in a controlled manner, but still increase from the start of 2023 despite the extension of the tariff shield. According to the tenant of Bercy, it is not only up to the State to bear the soaring gas prices, the French must also take a small share.
The consumer is facing a veritable spike in gas prices in recent months. For households using gas as a means of cooking, but also for heating, the successive increases will seriously affect the end-of-year budget. The Energy Regulatory Commission (CRE) has indeed announced a mess of increases in recent months, these increases affecting the regulated gas prices charged by Engie. They act indirectly on market prices. We summarize what has happened in the last few months:
In France, there is no reason to worry, for the time being. First, with Italy, France is the best European student in terms of gas storage according to Le Parisien. This greatly protects us, initially, from the risk of lack of supply and variations in supply. Second, France has three LNG terminals: Montoir-de-Bretagne (Loire-Atlantique), Fos-sur-Mer (Bouches-du-Rhône) and Dunkirk (Nord). A considerable advantage which should make it possible to supply French customers with peace of mind in the coming weeks.
Remember that in France, suppliers are required to store gas for several months, in layers. And that’s good news, the French tablecloths are almost full. Which covers 1/4 of the annual consumption. The difficulty will be to restock them at the end of winter. Otherwise, major difficulties are to be expected for next winter.
Today, 40% of European gas is imported from Russia. Be careful however, only 17% of French gas comes from Russia, there is the big difference with ultra-dependent countries like Germany. Across the Rhine, our neighbors are 55% to 60% dependent on Russia in terms of gas imports. Also, the North Stream 2 pipeline has just been completed between Russia and Germany. German Chancellor Olaf Scholz has already suspended the authorization for this gas pipeline. Germany finds itself trapped, and could be in big trouble in the event of a cold snap.
If Russia decides to no longer supply France with gas, France will still have the possibility of obtaining supplies from Norway (36% of the gas imported into France) or Algeria (8% of the gas imported into France), other trading partners of France on gas. Please note that these countries have much more limited supply capacities than Russia. This import of liquefied gas from Norway and Algeria remains, today, the most serious and interesting track if Russia were to stop supplying Europe.
Are you still dependent on regulated gas prices? This price increase is not the only reason to look elsewhere! Since the Energy and Climate law adopted in 2019, regulated tariffs are gradually disappearing. Engie has stopped marketing new contracts at regulated sales tariffs (TRV), since November 2019, which means that you will soon be changing contracts. If you have an Engie contract, don’t panic. It remains valid until June 30, 2023. In this context of crisis, are you studying the possibility of changing your energy supplier more seriously? Consult our dedicated file without further delay:
Be careful however, since if you have not changed your contract yourself, you will see your contract automatically switch to a market offer from Engie, from July 1, 2023. If you change supplier, find out on the site from the national energy ombudsman, here, which offers a comparator of offers to find the formula that corresponds to your consumption needs.
Want to know the price of gas near you? Here are some examples: gas prices in Paris, Marseille, Lyon, Rennes, Nantes, or Lille. You can also search for the city of your choice using the search bar above.
