Gas prices to rise (again) for millions in France this September
France’s energy regulator will increase its benchmark price by 5.6%
Published
Millions of households in France are set to see gas costs rise this September as the country’s Commission de régulation de l’énergie (France’s energy regulator - CRE) increases its monthly reference price.
The CRE’s reference price will rise to €172.05 per megawatt-hour (MWh), including VAT, in September, an increase of 5.6% from August.
The change will affect around six million households, or approximately 60% of residential gas subscribers, whose contracts are indexed to the CRE's reference price.
Households with fixed-price gas contracts will not be affected by this increase.
Why are gas prices rising?
The September increase, according to CRE, is linked to higher prices on wholesale gas markets.
It follows steep rises already this year due in large part to the conflict in the Middle East and disruption around the Strait of Hormuz.
In July, for example, CRE announced a 7.4% increase to the benchmark gas price for variable-rate contracts. For August, it dropped slightly to about €162.89/MWh, a fall of roughly 0.8%.
The regulator publishes its reference gas price every month for the following month. It is intended as a benchmark to help consumers compare suppliers' offers following the end of regulated gas tariffs in France in 2023.
For September, the CRE's calculation gives an average reference price of €122.16/MWh before VAT, or €172.05/MWh including VAT.
However, this is only a guide price, meaning suppliers are free to set their own prices so that the actual amount paid by households can vary depending on the contract and supplier.
