Understanding the Benchmark Price Concept: A Guide to Choosing the Best Gas Contract in France

2023-08-10 05:27:00

Since the disappearance of regulated sales tariffs in July 2023, the Energy Regulation Commission (CRE) has introduced the concept of benchmark price. The latter is designed as a reference to help the twelve million French households choose their gas contract. It reflects an average estimate of costs borne by suppliers, including supply costs and non-supply costs such as trade and transport costs.

Why this new reference?

The establishment of the benchmark price aims to promote free competition between the various suppliers on the market. Consumers can easily compare the available offers and choose the one that suits them best.

Objective : facilitate the choice of contracts for consumers

Principe : an average price reflecting supplier costs

Benefits : transparency and promotion of competition

The benchmark price figures for September 2023

For this month of September 2023, CRE suggests a reasonable price of 0.08218 euro per kWh for heating and 0.10512 euro per kWh for cooking. This announcement marks a slight drop from previous publications which reported an increase in the price per kilowatt hour.

Trends observed since July 2023

Since the introduction of the benchmark price in July 2023, here are the main changes observed:

July : rise in the price of the kilowatt hour

August : new rise

September : drop in gas price

How are suppliers positioning themselves in the face of this development?

Some suppliers, such as Engie, have offered gateway contracts with prices very close to those of reference drawn up by CRE. Other market players may opt for more competitive offers or additional services in order to stand out and attract more customers.

The search for the best contract

Faced with these variations, consumers are encouraged to find out about the different offers available and to compare the prices charged by suppliers. They can rely on the benchmark price published by CRE to make their choice.

What prospects for the coming months?

It is difficult to predict with certainty the evolution of gas prices in the coming months, given the volatility of the markets and the influence of external factors such as the weather or geopolitical tensions. Nevertheless, this slight drop in September 2023 can be seen as an encouraging sign for consumers.

Tools to better anticipate

In order to support French households in their choice of gas contract, it is recommended to follow the evolution of the CRE’s benchmark price, but also to keep informed of news in the sector and the offers proposed by the various suppliers.

The price of gas in September 2023 is experiencing a slight drop, after several months of rising. This development reflects market variations and encourages consumers to remain vigilant about their choice of gas contract. CRE’s benchmark price reference remains a valuable tool for comparing offers and making the best possible choice according to one’s needs and budget.

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