This development results from the rise in gas prices on the world market.
Gas prices keep on skyrocketing. After increasing by more than 25% over the past three months, the regulated gas tariff (TRVG) marketed by Engie will increase again in October, by 12.6%. In detail, the increase will be 4.5% for users of gas for cooking, 9.1% for those who have dual use (cooking and hot water), and 14.3% for households which heat with gas, details the Energy Regulatory Commission (CRE). This increase concerns approximately the 3 million residential consumers subscribing to the TRVG, including 2.77 million at Engie. They represent only 7.5% of national gas consumption. More than half of residential consumers have taken out fixed-price contracts over several years and are not affected in the short term by this increase.
The rise in the regulated tariff is the result of soaring gas prices on European and world markets, which are increasing Engie’s supply costs. “France imports 99% of the natural gas it consumes, variations in supply costs reflect gas prices on European and world markets, and it is the international gas producers (Russia, Norway, Algeria, Qatar, etc.) ) who benefit from these increases’, specifies the CRE.
The price of gas on European markets is showing at unprecedented levels. On the European benchmark market, the Dutch TTF, the gas to be delivered in November came out Monday afternoon at 77 euros per megawatt hour, up nearly 10% since the morning, and more than 140% since the end of June. In question, the European storage which must be filled with the approach of winter. However, they are at very low levels (except in France, where they are sufficient), hence very strong demand. In addition, Europe’s main gas suppliers, Norway and Russia, are unable to increase their exports to meet demand.
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