It is the end of regulated gas prices, which will disappear completely next summer. Customers who benefit from these contracts still have a little over two months to switch to another offer at market price. But how will this happen and what are the necessary steps? A summary to see more clearly before D-Day.
• What is the regulated gas rate?
Based on the former GDF monopoly, the regulated gas sales tariffs (TRV) are set by the State and are generally reviewed monthly based on the purchase costs in the wholesale markets, storage and transportation costs, or taxes. A regulated rate offer is an offer whose price is indexed to said rates, and therefore varies according to the increases or decreases decided by the public authorities.
• When will it go away?
But these regulated gas prices are living their last hours: they will completely disappear on July 1, 2023 for individuals and small condominiums, after having been repealed for professionals, large condominiums and communities. Under the energy and climate law adopted in November 2019, it was no longer possible to sign an offer at the regulated rate, but the customers holding these contracts had been able to maintain them until today.
• Which providers offer these offers?
These offers are now mainly offered by the historical supplier Engie (formerly GDF), but also local distributors such as Gaz de Bordeaux, Gaz de Grenoble or the Alsatian group Électricité de Strasbourg (ÉS). As of November 31, 2022, the Energy Regulatory Commission (CRE) still had 2.4 million residential customers with this type of contract, including 93% with Engie and 7% with local companies.
• What will happen to the customers?
A customer who has subscribed to an offer at a regulated price has until June 30, 2023 to subscribe to an offer at market price, that is, an offer whose price is freely set by the provider. Beyond this date, if you have not taken the necessary measures, the customer will automatically switch to a generic offer from your gas supplier. However, this offer can be terminated at any time if the customer does not wish to maintain it.
• What steps are necessary?
No action is required except to sign up for a provider’s market price offer, and no fees will be charged. It is not necessary to terminate your regulated rate contract, or request a change of meter. In addition, to see more clearly in the choice of a new offer at market price, the government has put online a comparator through the national energy ombudsman (http://comparateur.energie-info.Fr).
• How do we know if we are worried?
Several letters have been successively sent by providers to their affected customers in the last three years to warn them of the anticipated disappearance of FITs; the last letter was distributed last March. If not, it’s still possible to contact your supplier or check your latest gas bill to see if you’re concerned. In the case of an Engie contract, you should look out for the “Gaz regulated tariff” logo on the invoice.
Source: BFM TV
