Guide to Negotiating Gas Supply Contracts: Farewell to TRVG Tariffs, Hello to Benchmark Prices

2023-06-19 20:17:19

Farewell to regulated gas sales tariffs (TRVG), hello to the “benchmark price”. For the first time on Monday, the Energy Regulatory Commission (CRE) published the target price which should allow consumers to negotiate their gas supply contracts as fairly as possible, while the TRVGs disappear on June 30. Like a reference rent, this rate aims to avoid excessively high offers.

“The purpose of this indicative benchmark price is to serve as a compass for consumers who wish to compare supply offers from June 2023”, explains the energy policeman. Compared to the TRVG of June 2023, which is in fact that of the “tariff shield”, “the July 2023 CRE benchmark price is down 19.4% for an average consumer heating with gas and consuming 13,480 kWh per year”, specifies the CRE.

CRE

“This benchmark price is a variable price and includes both supply costs (cost of energy on the wholesale market) and “non-supply” costs such as commercial costs, transport costs or storage and the payment of the supplier”, details the CRE. Published monthly, it includes a subscription price and a price per kilowatt hour.

Default “toggle offers” from July 1

“CRE invites TRVG consumers to compare the offers offered by the different suppliers in order to subscribe to the one that suits them best”, recalls the organization. For this, the regulator refers to the National Energy Ombudsman’s online offer comparator.

About 2.55 million customers, including 2.3 million at Engie, the historic supplier, are affected by the “TRVG” offers, the price of which was decided by CRE. It is necessary to add 3 million in offer indexed on the TRVG.

“Consumers who have not left the TRVGs by June 30, 2023 will be transferred from July 1, 2023 to a default offer, known as the “toggle offer”, with their historical supplier”, Engie, or a local distribution supplier, recalls the CRE.

With AFP

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