The government has decided to smooth over the next few months the lowering of regulated gas sales prices applied by Engie, in order to avoid their too sudden rise, the Energy Regulatory Commission (CRE) said on Wednesday.
The average tax-free rate should normally have dropped by 5.1% on July 1, according to the usual calculation formula, but it will ultimately only decrease by 0.3% on that date for consumers, said the regulator. The effects of this drop will be smoothed over the following months - especially in winter - to avoid an excessively sharp rise in prices in the wake of the rebound in gas prices.
Natural gas prices fall in Europe
“The health crisis has indeed led to a historic fall in natural gas prices in Europe, which could result in a catch-up and therefore an increase in prices at the end of the year. The smoothing mechanism limits the price increases that could occur in the last quarter, ”underlines CRE.
The government has submitted a draft decree which "validates the tariff formula proposed by CRE and accepts its recommendation to smooth the evolution of regulated prices for the sale of natural gas between July 1, 2020 and February 28, 2021". CRE states that it has "given a favorable opinion".
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