It’s no longer a secret, the misdeeds of the conflict situation in the East impact all of Europe. For the winter that approach and the following months, a shortage of energy is to be feared in France. When we talk about energy, we are not just talking about electricity, but also some gas.
For the moment, the price of gas is on the rise. Fortunately, the French government has limited the prices. The tariff shield limits the increase to only 4%. As you can imagine, this won’t last forever. Expect to see an increase up to 15% by January 2023.
An increase limited to 15% for gas
It’s official, the price of gas will know an increase of up to 15%. In any case, Prime Minister Elisabeth Borne announced it at a press conference Wednesday September 14th.
???? Here are the main announcements to remember ⤵️
• The increase in electricity and gas prices will be limited to 15% in 2023
• Energy vouchers from €100 to €200 for 12 million households
• Aid for households heating with oil should be paid “in November” pic.twitter.com/jGvnmfCsRC
— TF1Info (@TF1Info) September 14, 2022
The head of government has formalized an increase limited to 15%. Always his words, that would represent an increase 25 euros per month for the French.
“In the most likely scenarios, if everyone takes responsibility, there will be no cuts. We would then not need to activate the rationing device, ”prompted the Prime Minister.
At least, it’s reassuring, concerning the electricity, there will probably be no cut. So, for the winter, There’s nothing to be scared of. Finally, in return, the government invites each citizen to adopt an attitude of sobriety.
Emmanuel Macron has even already proposed the ideal temperature for indoor heating. As a reminder, the ideal temperature is 19°C.
“The most effective thing to do is to try to lock in a heating reference, as soon as it starts to get cold, around 19°C in the room, to maintain the ambient temperature”, said explained the President of the Republic during a press conference on 5 September.
Why are gas prices soaring?
Throughout Europe, there is a strong inflation of natural gas prices. On March 8, 2022, the price per megawatt hour reached a historic high. The TTF rating, the Dutch benchmark in Europe, has reached 345 euros per megawatt hour. Remember that before the health and geopolitical crisis, the price per megawatt hour was 127 euros.
According to the Optima Energie website:
“This represents an increase of nearly 140%! »
This situation is the first consequence of the conflict on European soil. You should know that this outbreak started at the beginning of the year. However, in France, the price of gas does not seem to be increasing.
Inflation has not yet reached French homes, because the government introduced a tariff shield on the price of energy. What’s more, prices have come down a bit in the last month.
The price fell under the 200 euro mark per megawatt hour. Monday, September 12, the price displayed is 191.50 euros. Nevertheless, be on your guard, since the tariff shield will disappear one day or another.
When will the price increase?
The Prime Minister, Elisabeth Borne, has already announced it, there would be an increase of up to 15% on the price of gas. Economy Minister Bruno Le Maire said that this increase will start in 2023.
Bruno Le Maire added that it is not up to the French state alone to support soaring gas prices. The French should also, according to him, take part. The Bercy tenant, alluding to the removal of the tariff shield.
Indeed, this shield established by the executive means that the State pay the loss gas suppliers. In addition, the regulated sales tariff (TRV) is no longer available since the Energy and Climate law adopted in 2019.
This would mean that those who benefit from an Engie contract will soon change their contract. When exactly ? The contracts will be valid until June 30, 2023.
The evolution of gas prices in 2021
Since last year, the price of gas has already started to burn. For households that use gas for cooking and heating, last year’s price increase alone is a real expense in the family budget.
As a result of gas prices on the international market, French consumers are suffering unprecedented increases. The Energy Regulation Commission (CRE) summarizes the increases made by Engie in recent months.
Here are the numbers:
- July 2021: +10%
- August 2021: +5%
- September 2021: +8.7%
- October 2021: +12.6%
- November 2021: +15%
In all, between July and November 2021, the increase reached more than 50%. Fortunately, in 2022, the government at the time had put in place a tariff shield which sets gas prices at the level of the regulated rate in October 2021.
“We are setting up a tariff shield. Concretely, throughout next winter, the gas price will never exceed the level of October 2021, ”said former Prime Minister Jean Castex.
????AND DIRECTLY
Elisabeth Borne announces that electricity and gas price increases will be limited to 15% in 2023https://t.co/7McNtMYwd5 pic.twitter.com/rpQAvqmeAZ— BFMTV (@BFMTV) September 14, 2022
Gas stock: is France safe?
All these gas shortages started when the Kremlin decided to limit its exports to Europe. If this supply is completely cut off, what will happen to France?
Do not panic, according to Le Parisien, after Italy, France is the second with regard to gas reserves. According to the daily newspaper, we have 3 LNG terminals.
Namely, to:
- Montoir-de-Bretagne (Loire-Atlantique)
- Fos-sur-Mer (Bouches-du-Rhone)
- Dunkirk (North)
These are facilities for regasifying liquefied natural gas. These stations enable France to import liquefied gas from the Norway (36%) and theAlgeria (8%). What accounts for 44% gas imports into France.
What’s more, 40% of European gas is imported from the big country. In contrast, only 17% go to France. Thus, in the worst-case scenario, if there are no more exports, France will not be the first victim.
To reassure you, gas reserves in France currently can last until the end of winter. It should be remembered that gas suppliers in France are required to carry out stocks gas for several months.
The price of gas could change, but the State assures that there will be no cut during this winter. Moreover, with regard to this situation of 2023, the government has planned to offer exceptional energy checks to the most modest.