End of regulated gas prices in france – how to find the best deal

Regulated gas tariffs are due to be abolished on June 30, meaning millions of clients must start to think about switching to a contract at market prices. This follows a ruling from France’s

highest administrative court in July 2017 that said regulated tariffs were contrary to European competition law. However, the Conseil d’Etat ruled that regulated electricity prices could

continue as they are in the ‘general interest’. Since November 20, 2019, it is impossible to take out a gas contract at the regulated tariff. On June 30 last year, 2.7 million households

were still signed up, however. READ MORE: RISING ENERGY BILLS IN FRANCE: WE RECAP THE AID AVAILABLE IN 2023 CHECK YOUR TARIFF ON COMPARISON SITES To find the best deal, you can consult

comparison sites such as that of national energy ombudsman the Médiateur National de l’Energie (MNE), at comparateur-offres.energie-info.fr READ MORE: IS THERE A FEE FOR CHANGING ENERGY

CONTRACTS IN FRANCE? Certain private companies such as Hello Watt also have comparison platforms that allow you to sign up to an offer. Bastien Piot, brand and communication manager at Hello

Watt, said: “When we look at the market offers today, there are generally some which are 5% lower than the regulated tariff.” Caroline Keller, head of information and communication at the

MNE, said: “There are some offers at the same level as the regulated tariff, or marginally lower, but far fewer than before the crisis.” Providers must add all of their offers to the MNE’s

publicly-funded comparison site. “It is important to check because some are much more expensive,” she said. The same applies if you are contacted by a company offering a good deal. “Some

companies call, saying they will compare offers, but in general they make you sign a contract with their partners.” When you take out a new contract, your old contract is cancelled

automatically. READ MORE: HOW MUCH WILL FRENCH GAS BILLS INCREASE FROM JANUARY 2023? THREE TYPES OF PRICING Consumers can currently choose between three types of offer: market offers indexed

on the regulated tariff, meaning they rise and fall at the same rate; offers indexed on market prices, which are much more likely to fluctuate than regulated prices; and fixed-price offers

that stay the same for a year or more. “If fixed-price offers are available, we recommend taking them,” Mr Piot said. “It is highly unlikely prices will fall in the years to come. On the

contrary, we expect them to continue to rise.” According to Ms Keller, however: “Fixed-price offers are currently all very expensive.” Offers linked to market prices are considered extremely

risky in the current context. READ MORE: SCAM ALERT IN FRANCE: WATCH OUT FOR ONLINE ENERGY FRAUDSTERS WHAT HAPPENS AFTER JUNE 30? The best option for most people is likely to be an offer

indexed on the regulated tariff. But what happens when that is abolished? The Commission de régulation de l’énergie (CRE) energy regulator is working on a benchmark price, which will be

calculated in a similar way to the regulated tariff. It is very likely offers currently indexed on the regulated tariff will be linked to this new price, Ms Keller said. Clients will be

notified one month in advance of the new calculation method and will have the option of switching to a different provider. Lucile Buisson, who works on energy policy for consumer rights

group UFC-Que Choisir, said: “I think prices indexed to this new rate will be more attractive than fixed-price offers come July.” Engie previously had to offer contracts at the regulated

tariff, but this will not be the case for the new benchmark. “I think it is likely there will be offers at this price but it is not an obligation.” YOU WILL NOT BE CUT OFF If you are

currently on the regulated tariff and fail to take action before July 1, your gas supply will not be cut off. You will be automatically signed up to a market-rate offer with your previous

supplier. The CRE will decide in the coming months what type of offer this will be. “We will argue in favour of this being a low-risk offer,” Ms Buisson said. Since there are few offers

cheaper than the regulated tariff, it is best to wait until the last minute before switching, she added. This is due to the government’s _bouclier tarifaire_ (price shield), which limited

regulated gas prices to a 15% rise in January after they were frozen completely in November 2021. Offers indexed on the regulated tariff are also covered. READ MORE: DISABLED COUPLE EXCLUDED

FROM FRENCH ENERGY PRICE PROTECTION SOME PREDICT EXTENSION OF REGULATED TARIFF The price freeze is enshrined in law until June 30, the same day the regulated tariff is set to be abolished.

Prime Minister Elisabeth Borne has though said the “principle of the price freeze” will be extended until “the end of the year”. “We are struggling to see how the transition will work. With

the regulated tariff set to disappear, they need to find a way to apply the price freeze. “It is likely the regulated tariff will be extended until the end of the year,” Ms Buisson

suggested. Consumer group CLCV has written to the president requesting the regulated tariff be extended by two years. Alternatively, the price freeze could be extended using the benchmark

price. READ SUPPLIER MESSAGES ATTENTIVELY TO AVOID SURPRISES It is also more important than ever to keep on top of changes, even once you have signed a new contract. Ms Keller said: “When

you receive a message from your provider, you should read it attentively, and if they mention new prices, you need to compare the price per kWh to other offers on the market. “There are

providers who offer very attractive prices but after a few months they send a message saying they are raising them. “They have the right to do so if they warn clients a month in advance but

these messages often go unseen.” This is a relatively new phenomenon, directly linked to the energy crisis. “Certain consumers have had some very unpleasant surprises.” RELATED ARTICLES HOW

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