The regulated sales tariff (TRV) for natural gas sold by Engie will increase sharply, by nearly 10%, at 1er July, mainly because of the rise in world prices, the regulator announced on Friday, June 25. In France, “99% of the gas consumed is imported” recalls Engie.
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The Energy Regulatory Commission (CRE) explains, in a press release, that:
“Engie’s TRV increased by 9.96% before tax on 1er July 2021. This sharp increase is mainly due (for 7.8%) to the rise in gas prices on the world market linked to the economic recovery. “
Several factors involved
“Gas prices on the world market increase very sharply in July”, she explains, highlighting a series of factors: economic recovery, low levels of gas stocks, maintenance operations in the North Sea, increase in gas consumption for electricity production, etc.
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The other important factor is the rising cost of Energy Saving Certificates (EEC), a device that obliges gas or electricity suppliers to finance energy savings.
A rise after a period of decline
The government recently revised upwards the energy saving targets set within the framework of these measures for the period 2022-2025, as well as the share intended for the most vulnerable.
The sharp rise in regulated prices announced for July, however, follows a period of decline during the crisis. In the end, they only increased by 1.1% since the 1er January 2019, indicates CRE.