End of regulated gas tariffs: how to find your way around the offers?

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Several tools are at your disposal to study the different market offers that you can subscribe to, as the end of the regulated gas tariff on 1 approaches^er  July 2023. 2.6 million households continue to subscribe to the regulated rate from the incumbent Engie, which will offer a gateway offer before the end of June.

What is the regulated tariff?

Regulated gas sales tariffs (TRVs), which have existed since 1946, are gas supply contracts fixed once a year by the State, on a proposal from the Energy Regulatory Commission (ERC). They are marketed only by so-called incumbent suppliers: Engie or local companies of distribution (ELD).

Since 1999, these tariffs have coexisted with market offers freely set by the incumbent and alternative gas suppliers. This follows a 2017 Council of State decision to bring French law into line with EU law. This reform is part of the continuation of the opening up of the gas market to new suppliers offering competitive offers compared to TRVs.

The energy and climate act 2019 has removed the regulated tariff as of 1^er july 2023 for individuals and condominiums.

How to proceed with the end of the regulated gas tariff?

For residential customers (and condominiums consuming less than 150 000 kWh), it is no longer possible to purchase a natural gas contract at the regulated tariff (extinguishing tariff).

So far, you've signed up for a contract at a regulated rate?

You must have received several letters from your energy supplier or the government inviting you to choose a new offer.

It is advisable to anticipate the abolition of the regulated tariff and to subscribe to a market offer immediately. You can consult the list of suppliers proposing market offers, proposed by the Energy Ombudsman, by locating your home.

Have you already subscribed to a market offer indexed to the regulated price?

You don't have to do anything,

your supplier will offer you new clauses for price changes

, says the Ministry of Energy Transition. Contracts are offered by all suppliers. Their price is not determined by public authorities but defined by contract by suppliers.

What you need to know to study market offers

To help residential consumers anticipate the choice of a new offer, the Commission for Energy Regulation (CRE) has published a reference price. It's a price

marker

published on a monthly indicative basis, which includes a subscription price and a price per kilowatt hour (kWh).

The Energy Ombudsman also offers you a bid comparator independent of the operators in order to help you choose a new supplier.

Energy suppliers must also be able to provide you with

standard forms for the submission of tenders

, according to the Energy Ombudsman.

Fixed-price market offers

These offers offer a fixed price per contract for a fixed period of up to 1 to 3 years. Suppliers commit themselves to a fixed price during this period, but it is possible to change offer or supplier at any time and without charge.

Market offers indexed to regulated prices

For these offers, the price changes in relation to the regulated tariff, at the same frequency and in accordance with the level of indexation defined in the contract.

Market offers with other changes or indexing

The evolution of the price is defined here in the contract. For example, there are indexed offers in the wholesale markets for natural gas. These offers are risky because their price fluctuates strongly depending on supply and demand, seasonality and geopolitical context.

The criteria to be used

The criteria to consider when making your comparison are:

• the selling price of the energy (fixed part: subscription and variable part: consumption in kWh); in the case of a gas-electricity coupled offer, you have to compare the two prices separately;
• price developments;
• customer management service;
• ancillary costs;
• environmental criteria: there are for gas green offers which incorporate biogas or so-called bids

  carbon offsets

  .