kWh gas price: what you need to know for this end of the year?
What is the average price of gas per kWh?
The price of gas per kWh in France changes every month. Several factors are involved in its variation, especially the costs inherent in its production (extraction, transportation, etc.). Fluctuations in the price of oil are logically partly responsible for the increase in the price of natural gas, which in turn affects the price of electricity.
At present, the price of gas per kilowatt-hour has been frozen with the introduction of the tariff shield. Starting from July 2021, the price of one kWh of gas has been determined:
- €0.1121/kwH in base and B0 tariff (hot water and food)
- €0.0873/kWh in tariffs B1 and B2i.
It is not excluded that the gas tariff will be revised at the beginning of 2023. Indeed, the price of gas is locked until December 31, 2022, as it is now. from 1er Gas prices are expected to increase by 15% per kWh in January 2023, but remain frozen thereafter.
Why is the price of average gas per kWh increasing?
The price of natural gas per kWh follows the evolution of oil. As it is a fossil fuel that does not renew itself as quickly as it is used up, reserves are dwindling. The scarcity of the resource and the difficulty of its use lead to an increase in its price over a long period of time.
Recently, the conflict in Ukraine and Russia’s intervention in this country have also caused market tension. Vladimir Putin’s decision to cut gas supplies to Europe has caused prices to rise.
What about the tariff shield?
To limit the impact of kWh gas prices on French purchasing power, the government established a tariff shield. Therefore, this price has not increased since July 2021. The tariff shield refers to the prices of gas and electricity per kWh in regulated tariffs.
That is, it is only the price that the historical suppliers, which are EDF for electricity and Engie for gas and local distribution companies (ELD), can put on the market. Therefore, all alternative suppliers are not protected by the shield and are therefore forced to match market prices. Thus, many individuals who subscribe to these competitive offers have seen their bills increase dramatically. Only bids indexed to the regulated tariff of alternative suppliers are therefore affected by the tariff shield.
Thus, the price of one kilowatt hour of gas will increase by 15%er January 2023, but the protective shield will be maintained to limit the rise. The tariff protector is intended for residential consumers or small condominiums with a consumption of no more than 150 MW/h.
How much would gas cost without a price shield?
Without this tariff shield, the price of gas per kWh would have increased by 35.4% in 1 year.er Compared to February 1, 2022er It would increase again on October 2021. 1er 48.70% including tax compared to the same date in June 2022. The shield is believed to allow households to avoid increases in their bills of up to €200 a month for gas and €180 a month for electricity. Without the shield, gas prices would have risen 337% since July 2005. This was capped at 136% by this government measure.
Should we be afraid of catching up in 2024?
Since the rate shield remains in place until 2023, many households fear catching up next year. Economy Minister Bruno Le Maire was clear on the matter when he announced in May 2022: “I will be very clear: there will be no follow-up on the bill for consumers.”
The two billion euros involved in limiting the increase in energy prices must be compensated by the implementation of the financial bill in October 2022.
The impact of gas price increases on our bills
Gas prices have not affected all consumers equally. Indeed, those remaining with Engie, the historic regulated price supplier, were able to benefit from a price shield. This measure taken by the state made it possible to limit the tariff increase compared to the market price. On the other hand, customers of alternative gas suppliers saw their bills increase even though they had the same consumption as usual.
If the tariff shield is not preserved in early 2023, it is feared that the regulated tariff will increase in turn. Especially since the last one will disappear in June 2023. Consumers who are still subscribed to the regulated gas tariff will have to choose another offer. This does not necessarily mean leaving Engie, but it is recommended to use a gas price comparison tool to find the offer that best suits your needs and at the best price.
How to save gas price per KWh?
It is not easy to activate competition in the energy crisis, as most suppliers are forced to adjust themselves to the market price. Energy conservation and caution are the best solutions to combat growth.
That said, using a price comparator costs you nothing and may allow you to find a quote with a more affordable kWh rate. Opening up the market to competition has allowed consumers to switch energy suppliers without notice, without interruption and at no cost. So, if you find a better offer, you can subscribe to it without delay. Termination procedures are handled by your new supplier, so you don’t have to do anything other than sign a new contract.
