Since the French electricity and natural gas markets were fully opened up to competition on 1 July 2007, consumers have been free to choose their energy supplier.
As a result of deregulation, suppliers other than the incumbent operator, who are known as “alternative” suppliers, entered the retail natural gas market, and consumers are now able to choose between two types of offers:
Article 63 of Law No. 2019-1147, promulgated on 8 November 2019, on energy and climate (LEC) puts an end to the regulated gas tariffs of incumbent suppliers in several stages. This article provides that regulated gas tariffs can no longer be offered one month after the promulgation of the LEC, i.e. from 8 December 2019.
Consumers whose annual natural gas consumption is less than or equal to 30 MWh/year may cancel their contracts and switch to a new product or supplier at any time, at no additional cost and with no interruption in their supply.
Since 1 January 2019, households whose annual taxable income per head is less than €10,700 may be eligible for an energy voucher, which can be used to pay an energy bill, care home charge or to cover the costs of home energy renovation. The energy voucher is the replacement for the previous “social rates” applied to electricity and gas bills. For more information, visit the government website about it.
As of 31 March 2022, 76% of residential and non-residential sites were signed up to mar-ket products (42% with alternative suppliers), while 24% were paying the regulated tariff. Around 94% of natural gas consumed was supplied at market prices (65% by alternative suppliers) and 6% under regulated sale tariff contracts.
The retail price (net of tax) of an electricity product, whether at the regulated tariff or the market price, includes:
The retail natural gas price also includes three taxes and contributions which apply in the same way to the bills paid by consumers at the regulated tariff or at market rates:
Energie-info.fr, the website of the National Energy Ombudsman, offers comprehensive information on the supply of electricity and natural gas. In particular, it gives access to:
- an independent price comparison tool, the only one set up by the public authorities accessible on the internet;
- practical sheets with a lot of information and advice in energy (billing, change of suppliers, taxes, etc.).
Both the incumbent and alternative suppliers offer products at market prices.
Consumers may choose:
Article 63 of Law No. 2019-1147, promulgated on 8 November 2019, on energy and cli-mate (LEC) puts an end to the regulated gas sales tariffs of incumbent suppliers in several stages:
- on 1 December 2020, for non-domestic final consumers with an annual reference consumption of less than 30 MWh;
- on 1 July 2023, for domestic final consumers with an annual reference consumption of less than 30 MWh, the sole owners of a building for main residential use consuming less than 150 MWh per year and the syndicates of co-owners of such a building.
Regulated tariffs for natural gas remain governed by Articles L. 445-1 to L. 445-4 and R. 445-1 to R. 445-7 of the Energy Code. They are offered by the incumbent suppliers: ENGIE and 22 ELDs in their respective service areas.
The regulated sale tariffs for gas charged by each incumbent supplier are set by the Ministers for Economy and Energy, based on an official opinion from CRE. They must cover the supply costs of operators.
These tariffs vary to reflect:
Between two ministerial tariff orders, suppliers may alter their tariff scale. These apply directly, af-ter being checked by CRE to ensure they satisfy the formula published in the supplier’s specific ministerial order. Tariff changes are monthly for ENGIE, and quarterly for the other incumbent suppliers.
The formula used to estimate supply costs to be taken into account in the regulated tariffs for natural gas applied by ENGIE is published by ministerial order (order of 26 June 2020).
Between January 2008 and September 2021, ENGIE’s regulated sale tariffs increased by €26.96 constant euros 2022. f
In practice, the retail markets in electricity and gas work according to rules established by working groups set up by CRE in 2005. These WGs include all of the stakeholders concerned: consumer re-presentatives, suppliers, system operators and the government. Under the aegis of CRE, they have defined common operating procedures for professionals in the industry.
The operating rules (or procedures) between suppliers and system operators in respect of professio-nal or residential clients are laid down in the “customer reference base”, which has been in force since the electricity and natural gas markets were opened up to competition. The reference base is the result of work by two consultation bodies: the Electricity Working Group (GTE) and the Gas Working Group (GTG).