Gas: the regulated tariff will increase by 8.7% in September

Europe 1 with AFP 2:03 p.m., August 27, 2021

The regulated sales tariff (TRV) for natural gas sold by Engie will increase by 8.7% (or 7.9% including tax) on September 1, due in particular to the rise in world prices, the regulator announced on Friday.

This increase, in line with the trend of recent months, will be 2.7% for customers using gas for cooking, 5.5% for those who have dual use, cooking and hot water, and 9% for those who use gas for cooking. gas-heated homes, said the Energy Regulatory Commission (CRE) in a press release.

An unprecedented increase

"This unprecedented increase is observed in all European and Asian countries. It is explained by the global economic recovery observed for several months and by the sharp increase in gas prices on the world market due to an exceptional context" , explains CRE. Very tight LNG market, with Asian prices continuously rising, European storage levels at their lowest for years and to be quickly replenished for the winter, infrastructure maintenance problems (Nord Stream, Yamal) are all detailed factors by the regulator.

Since January 1, 2019, the regulated prices for the sale of gas HT of Engie have increased by 15.8%, and by 16.7% since January 1, 2015. They had experienced a period of decline during the crisis.

Regulated gas sales tariffs will cease on July 1, 2023. About 2.8 million residential consumers out of a total of 10.7 million (or 26%), now hold a TRV contract with Engie . 

"A bad blow for purchasing power"

Among the 7.6 million residential consumers with a market offer contract, around 5.5 million have subscribed to a fixed price offer and are therefore not affected by the monthly changes in the regulated tariff. "We take note, we can not go against the strong winds of the market", reacted François Carlier, general delegate of the association of consumers CLCV. "It's a bad blow for purchasing power," he added. "At the moment, it doesn't have too many consequences because people don't use too much gas, except for cooking, but in the winter the bills can be painful." 

"It is very rare to see such significant increases in summer," assures Antoine Aautier, head of studies for the consumer association UFC-Que Choisir. "If this early in the year we have tensions, we can logically expect that they will continue, or even increase this winter." The expert recommends now to compare the different fixed price offers, "which give consumers visibility on the prices charged". The consumer can terminate any type of energy contract at any time free of charge. "There is no commitment," recalls Antoine Autier. "The advantage is that by committing yourself right away [to a fixed-price contract], you protect yourself a little from possible future increases in the market."