7% of the 2.3 million households subscribed to regulated gas sales tariffs (TRV) in France are unable to benefit from Engie’s offers and must rely on the services of a local distribution company (ELD). This situation, which deprives consumers of any competition, is more expensive for these households.
Recently, a reader of MoneyVox raised the question of what to do in Bordeaux, where there is only one gas supplier. This issue is not unique to Bordeaux, as cities like Strasbourg, Grenoble, and about twenty other French geographical areas also have their gas markets controlled by ELDs. Out of the 2.3 million customers benefiting from regulated gas sales tariffs, approximately 7% are affected by this lack of alternatives, as no other supplier has set up in these areas.
Customers of ELDs have received letters informing them of the modification of their contracts with the end of the gas TRV. For example, Gaz de Bordeaux offers a switch offer, which is a market offer modeled on the reference price published by the Energy Regulation Commission (CRE). This reference price takes into account the specific cases of ELDs and aims to provide a means of comparison for customers who may want to change suppliers, if they have the option to do so. However, in Bordeaux, Strasbourg, and other areas controlled by ELDs, no competing offer is currently available.
The prices quoted by CRE for ELDs show significant variations depending on the location. For Gaz de Bordeaux customers, the reference price for hot water and cooking is 0.13116 euro per kilowatt hour including tax, and 0.07984 euro/kWh for gas consumers for heating. In Strasbourg, the prices deemed reasonable by CRE are 0.06857 euro/kWh and 0.08153 euro/kWh, compared to 0.19464 euro/kWh and 0.10191 euro/kWh in Grenoble.
Currently, there is a difference of around a hundred euros on the annual bill between ELDs and the rest of the territory at Engie’s TRV. This difference is due to the significantly higher network operating costs billed by the ELDs. According to CRE estimates, the subscription costs range from 134.51 euros to 352.82 euros including tax in Bordeaux, from 203.03 euros to 338.64 euros in Strasbourg, and from 139.24 euros to 382.26 euros in Grenoble. For the biggest consumers, the costs can even reach 450 euros in Sallanches.
In comparison, starting from July 1, customers of Engie’s Passerelle offer will pay 0.10818 euros including tax for small households consuming up to 3999 kilowatt hours (KWh) per year, and between 0.08248 and 0.08620 euros for those with higher needs. In addition to the consumption price, customers will have to pay a subscription fee ranging from 102.12 euros to 249.84 euros per year, as well as taxes. The geographical area of the home also affects the price, as France is divided into 6 zones. According to CRE, an acceptable offer should have a price of 0.08195 euro per KWh for heating and 0.10488 euro per KWh for hot water and cooking.
Overall, the lack of competition in areas controlled by ELDs results in higher prices for gas consumers. The situation raises concerns about the affordability and accessibility of gas services for these households.
