Confusion after gas price ruling

FRANCE’S highest court has overturned gas tariffs introduced by the Fillon government in December 2011.

The ruling affects 80% of the 11 million households in France with gas contracts.

Neither the government nor GDF Suez has commented on the affect this would have on consumers.

It is not the first time the court, the Conseil d’Etat, has stepped in to override gas prices.

In November 2011 it overturned a law freezing gas prices, which led to GDF Suez gaining permission in July 2012 to bill households retrospectively for the difference.

The latest judgment came because the court considered that the different treatment of different households breached the principle of equality.

Such court actions are likely to cease as legislation passed at the end of 2012 has changed the way gas prices are reviewed, putting in place a formula to review gas prices automatically every month.

The government has retained the right to intervene in prices in exceptional cases, but any action to freeze or ameliorate rises must be covered in such a way that the supply costs of GDF Suez are met.

Photo:Teq