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A gas supplier threatens to increase the bills by a hundred euros!

  • Post category:Economy News
  • Reading time:8 mins read

The situation is critical. Due to the conflict situation in Europe, the price of gas has skyrocketed It is not only households who suffer this price increase. Gas suppliers are the first victims, because they are the ones who buy high price gas in the international market.

Moreover, the supplier Gaz Européen, a subsidiary of Butagaz, can no longer contain the cost under the fixed price rule. The latter has warned its customers that an additional cost at the market price will be applied this winter for heavy consumption. A decision which does not enchant the CLCV. The association has given formal notice to Gaz Européen.

complicated situations

According to figures published by INSEE, inflation in September was 5.6% over one year. The National Institute of Statistics and Economic Studies published on their official website on September 1, 2022:

“Between the second quarter of 2021 and the second quarter of 2022, the price of gas for households increased by 37.6%. It would have increased by 105.0% if the price shield had not been put in place. »

This increase of 37.6% is due to the level of the tariff shield at 4%. For next year, the limit will increase to 15%. For energy suppliers, certain tariffs do not have access to this limitation. The fixed tariff of the European Gas supplier is not entitled to this.

The different gas prices

In France, there are 4 gas price tariffs. According to our colleagues from Le Monde, in an article on Saturday October 29, 2022, since the opening to competition in 2007, consumers can choose between the offers :

  • At a tariff regulated by the public authorities: revised every month depending, in particular, on the costs of extraction and transport
  • Free rate indexed to regulated rates: revised every month
  • Free rate indexed on the wholesale market: revised monthly, quarterly or half-yearly, depending on the contract;
  • At free fixed price: valid between one to four years, depending on the contract.

Since inflation, more specifically on contracts concluded from September 1, the tariff shield will be applied. Thus, all prices revised every month can benefit. This concerns the first 3 of the aforementioned list. As for the last one, that is to say the free fixed rate contract, it is a bit complicated. There are only contract renewals between one and four years. Providers can they change the terms of the contract along the way?

Consumers will benefit. The price is set on the basis of last year’s gas price. However, as we have just seen, inflation is 105% compared to 2021. Who will pay the difference? Can suppliers change contracts? The European gas supplier decided to increase the fixed price per megawatt hour.

The European gas supplier wants to raise prices

Given the complexity of the situation, the supplier Gaz Européen provided by mail their customers . If consumption of the latter were to increase this year, compared to the previous one, the prices provided for in the contract would be revised upwards.

The surplus made will no longer be charged at the set pricein the contract. Currently, this fixed value is 32.72 euros per megawatt hour (MWh). The over-invoicing that the supplier Gaz Européen, a subsidiary of Butagaz, is trying to implement will be invoiced at the current market price.

An inflationary price at more than 100%! So the bill could increase by a hundred euros. It is this decision that the consumer association CLCV points to.

The CLCV association issues formal notice to the European Gas supplier

This Thursday, October 27, 2022, the consumer association CLCV announces formal notice from Gaz Européen on Capital . The association highlights that the victims are the 500,000 customers, mostly condominiums and social landlords. They are the first victims, because since 2016, they can no longer benefit from the regulated tariffgas sales.

According to the consumer association, what the supplier Gaz Européen fact is a breach of contract. Here are their own words.

“When you sell at a fixed price, it is true that you are never sure of the volumes that you are going to have to supply. This hazard is reinforced by the weather effect, which influences the quantity of gas consumed. But we believe that the supplier made his choice when signing the contract: he could have chosen a perfectly secure or less risky position. In any case, there is no need to transfer this risk to the end customer”, analyzes François Carlier, general delegate of the CLCV, in the columns of Capital.

Butagaz’s response

The supplier did not deny the fact thatthey mailed some of their customers. The courier explains the difficult market situation that suppliers have been facing for several months now. Nobody predicted such a rise in energy prices.

In the provider’s own words reported by Money Vox on October 27, 2022:

“Until the summer of 2021, market prices were generally stable. However, we are currently going through a period where extraordinary variations in the price of natural gas and electricity have a direct impact on the balance of certain contracts that bind us with our customers. »

The European Gas supplier also explains thathe did not increase the fixed price rate. This over-invoicing is considered as a possible price supplement if certain conditions were met. Management also adds that if all households applied the sobriety instructions, there would be no increase. This is precisely why couriers are targeted for a certain household .

After declaring that the supplier is committed to providing the best support and remains attentive to its customers, Butagaz declared:

“Also, we have carefully read the letter from the consumer defense association CLCV sent to Gaz Européen, to which we are preparing a detailed response. »

A problem that affects several energy suppliers

Reported by Le Monde on October 27, 2022, the donors Paris Habitat and Seine-Saint-Denis Habitat also fail to renew their contractselectricity on favorable terms. For the change of contract case, CLCV has taken four electricity suppliers to court since the beginning of the energy crisis.

Two class actions are launched against Cdiscount Energie and GreenYellow. All this proves to us that energy inflation is not burdensome only for households. Energy suppliers, including the supplier Gaz Européen, are also in difficulty. Therefore, apply the attitude of energetic sobriety.